New Delhi: The growth outlook for FY26 remains strong, supported by domestic demand, lower inflation, monetary easing, and the positive effects of GST reforms despite global economic and trade policy uncertainties, a finance ministry report said on Monday.

“Against a global backdrop characterised by economic and trade policy uncertainty, India’s economy gained momentum in Q2 FY26. This is particularly significant, as the United States imposed higher tariffs on India in August,” the finance ministry said in its monthly economic review.

Various supply-side High Frequency Indicators (HFIs) have displayed healthy trends while demand conditions continued to improve with the GST reforms and festive season sentiments spurring consumption, it said.

“The growth outlook for FY26 remains strong,

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