India's Economy Shows Strong Growth Ahead of Budget 2026 with Focus on Tax Reforms and Sectoral Support

India's economy is experiencing robust growth, with GDP projected at 7.4% for FY26, driven by strong consumption, services exports, and infrastructure spending. The upcoming Budget 2026 aims to support this momentum through tax reforms, increased capital expenditure, and incentives for sectors like manufacturing, agriculture, renewable energy, and technology, including AI. Industry bodies and economists emphasize the need for fiscal prudence, improved tax compliance, and targeted support for MSMEs, startups, and defence, while cautioning about faltering tax revenues and the importance of sustainable growth.