Economists Re-Think Long-Held Assumptions About Growth & Stability As India Heads Into Budget 2026

Overview of the Economic Crossroads

The Indian economy is at a puzzling juncture as it approaches Budget 2026. Historically, low inflation was seen as universally positive, but the current record-low inflation is hurting government revenues and corporate top lines. This shift has brought a newfound focus on Nominal GDP and Debt-to-GDP dynamics over traditional real GDP and fiscal deficit metrics.

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Growth Targets: Real vs. Nominal GDP

Economists on the panel presented varying forecasts for India’s growth, reflecting both cyclical headwinds and emerging monetary tailwinds.