India’s growth momentum remains robust over strong private consumption, manufacturing

Mumbai, April 10
India’s growth momentum continues to remain robust, with Q3 GDP expanding by 7.8 per cent and FY26 growth projected at 7.6 per cent, supported by healthy private consumption growth of 8.7 per cent and a sharp 13.3 per cent expansion in manufacturing, according to a new report.

According to PL Asset Management, the asset management arm of PL Capital Group (Prabhudas Lilladher), while global markets reacted sharply to disruptions in energy supply and shifting monetary policy expectations, Indian equities showed relative stability, underpinned by strong domestic macroeconomic fundamentals, robust liquidity conditions, and continued institutional participation.

It highlights that resilient macro and supportive domestic liquidity has cushioned India against any geopolitical headwinds.

However, India's macro picture could turn adverse as a confluence of risks — rising crude prices, a weaker rupee, slower global growth, disrupted logistics chains, and tighter global financial conditions — could together widen the fiscal deficit, slow GDP growth, and erode the macro tailwinds currently supporting market confidence.

“The global environment is transitioning into a high-uncertainty, liquidity-constrained regime, driven by geopolitical risks and persistent energy disruptions. Elevated crude prices are expected to keep inflation sticky and interest rates higher for longer, creating pressure on earnings, fiscal balances, and currency stability, with the rupee remaining vulnerable,” said Siddharth Vora, Head - Quant Investment Strategies and Fund Manager, PL Asset Management.

“In this environment, disciplined risk management and selective positioning become essential. A preference for large caps, along with factors such as value, quality, and low volatility, is likely to be more resilient,” he added.

The report expects the India–US tariff reduction, the progress on the India–EU FTA, and the government’s Rs 12.2 lakh crore infrastructure push under Budget 2026 to boost export competitiveness, unlock new growth avenues, and accelerate the domestic capex cycle, reinforcing India’s medium-term growth outlook.

On inflation, the report notes that it remains comfortably within the RBI's tolerance band, providing policymakers with room to manoeuvre.