New Delhi, Feb. 25 -- Economic momentum in India picked up sequentially during the December quarter, supported by festive season demand and the impact of GST rate cuts. According to the UBS India Composite Economic Indicator report, early data for January 2026 suggests that this robust momentum has continued into the new year. The analysis indicates that the Indian economy is currently maintaining a stable position characterised by strong domestic demand and well-contained macro stability risks.

The report stated, "We think the Indian economy is in a sweet spot with strong growth in domestic demand and contained macro stability risks. Building in lower US trade tariffs, reforms and cyclical policy support, we expect India's FY27 real GDP...