Hold onto your seats, because India’s economy is gearing up to sprint ahead at a scorching 6.5% growth rate in FY26, leaving global trade wars and tariff tantrums in the dust! The secret weapon? A sharp plunge in crude oil prices that’s about to give the Indian consumer and businesses the much-needed breather they’ve been craving.
While the world frets over rising tariffs and a slowdown in exports, India is playing a different game. Crude prices have tumbled from a stubborn $75 to a more manageable $65 per barrel – and experts expect this dip to stick around. This means lower fuel costs, cooling inflation, and a turbocharged boost to domestic demand. Forget the gloom from global trade tensions; India’s growth engine is firing on all cylinders, fueled by falling oil prices and robust internal consumption. EY’s Chief Policy Advisor D K Srivastava didn’t mince words: India is not just surviving the global chaos; it’s thriving. With inflation expected to stay below 4%, and smart fiscal and monetary policies in place, India is set to outpace most major economies. The country’s strategy to diversify crude imports, eyeing more from the US, and clamp down on dumping is a masterstroke that’s protecting its growth story from external shocks.Sure, exports might stumble under the weight of tariffs and weak global demand, but here’s the kicker-net exports have barely been a growth driver lately. India’s real power lies in its massive domestic market, government spending, and investments that keep the wheels turning no matter what storms rage outside. Global heavyweights like the IMF and World Bank are nodding in agreement, forecasting India’s growth north of 6%, while the Reserve Bank of India and S&P are confidently pegging it at 6.5%. So, while others fret over trade wars and geopolitical jitters, India is busy rewriting the rules of economic resilience.