CRISIL raises India's GDP growth forecast to 7%: Here's why
29 Nov 2025

Ratings agency CRISIL has revised its projection for India's GDP growth upward, from 6.5% to a robust 7%, for the current fiscal year.

The revision comes on the back of an impressive first-half performance, with a real GDP growth of 8.2% in Q2, beating expectations.

However, nominal GDP growth was modest at 8.7% due to easing inflation rates during this period.

Private consumption and service sector growth drive GDP
Economic drivers

CRISIL's Chief Economist, Dharmakirti Joshi, highlighted that private consumption was the main contributor to the robust real GDP growth.

He also noted a sharp increase in manufacturing and services sectors from the supply side.

Joshi said lower food inflation has encouraged discretionary spending across India, further bolstering economic growth during this period.

Future expectations and government investment
Outlook

Looking ahead, Joshi expects the third quarter to continue benefiting from these economic tailwinds. He also anticipates a potential lagged recovery in private investments.

Government investment is likely to stabilize during this period.

The rationalization of GST rates is also expected to boost private consumption, along with income tax cuts and interest rate reductions triggered by repo rate cuts from RBI's Monetary Policy Committee.