New Delhi, Sept. 26 -- Regulatory reforms and infrastructure development will be key to sustaining India's growth momentum, the finance ministry said in its August Monthly Economic Review, urging states to leverage cooperative federalism and contribute to this effort by pursuing state-level deregulation.

"The near-term outlook, therefore, is characterized by steady, reform-driven growth rooted in macroeconomic discipline and adaptive economic diplomacy, with ongoing vigilance warranted against external shocks and global market volatility," added the review released on Friday.

India's economy defied expectations in the first quarter of 2025-26, with gross domestic product (GDP) growth reaching 7.8%, powered largely by resilient domestic ...