New Delhi: On Monday, global professional services firm EY raised its projection for India’s real GDP growth to 6.7 percent, an increase from the previous estimate of 6.5 percent, attributing this change to the robust GST 2.0 reforms. This revision is based on expectations of monetary easing and enhanced domestic demand stemming from GST rate adjustments in light of global uncertainties, as stated in EY’s Economy Watch September edition.
According to the firm, ‘With Q1 FY26 real GDP growth at 7.8 percent and demand stimulation from GST reforms, countered by global challenges impacting India’s export performance in both goods and services, we anticipate India will still achieve an annual real GDP growth of 6.7 percent in FY26.’ DK Srivastava, Chief Policy Advisor at EY India, remarked, ‘With GST 2.0 reforms increasing disposable incomes and domestic demand, along with trade diversification initiatives creating new opportunities, India is well-positioned to maintain its growth momentum in FY26.
Strategic investments in technology and targeted policy measures will be essential for converting reforms into long-term economic benefits.’ In August 2025, the manufacturing PMI rose to 59.3, the highest since February 2008, while the services PMI climbed to 62.9, the highest since June 2010.