India's economic outlook remains broadly optimistic despite a turbulent international environment marked by geopolitical uncertainties and shifting trade dynamics, according to the Finance Ministry's monthly economic review released on Friday.

With the GDP growth having surprised on the upside in Q1 FY26, domestic components of demand have played a key role in supporting growth and are expected to remain so in the next half year as well, it said.

Recognising the need to strengthen domestic growth drivers amid these heightened external sector risks, the government has announced a rationalisation of the GST regime. This move is expected to lower the tax burden on consumers, boost consumption, and provide a cushion against tariff impacts. Additionally, it is likely to improve demand visibil

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