Strong Economy, Weak Comfort: Why 2026 Could Be India’s Toughest Economic Year

India steps into 2026 with strong growth momentum but rising uncertainties cloud the outlook. While GDP growth has remained robust, unresolved India–US trade talks and potential Trump-era tariffs threaten exports, jobs, and investor confidence. Rising living costs, a weak rupee, volatile crude oil prices, and slower job creation are adding pressure on households and businesses alike. Private investment remains cautious, while election-year freebies strain state finances. Amid these headwinds, the Modi government’s reform push in 2025 has set the stage for change. Now, all eyes are on Budget 2026 to revive confidence, ease costs, and boost employment.