India, July 20 -- Deloitte India on Sunday projected India's economy to grow at 6.5-6.8 per cent in the current fiscal, with growth expected to strengthen in the second half of the year, supported by festive demand, monetary easing, and a gradual stabilisation in global conditions.

In its latest edition of the Economic Outlook report, Deloitte said India entered 2026 in a Goldilocks phase, with macroeconomic fundamentals appearing unusually well balanced, but geopolitical developments altered the global landscape, with tensions in the Middle East disrupting critical shipping routes, triggering volatility in commodity prices and weakening investor sentiment. This resulted in a wider trade deficit, sustained capital outflows, and a sharp d...