<h1>Government forecasts FY26 GDP growth 6.3-6.8% but warns foreign penal export tariffs could shave 0.2-1% off GDP</h1> Government projects FY26 GDP growth of 6.3-6.8% while warning that newly imposed foreign penal tariffs on exports could create downside risks, particularly to Q2 manufacturing and trade flows; authorities expect tariffs tied to third-country oil policy to be temporary and are engaged in negotiations to resolve them. Domestic policy response includes planned reductions in indirect taxes via GST slab consolidation to support consumption, with the fiscal authority committing to preserve fiscal targets despite anticipated revenue loss. Private estimates place potential GDP downside at 0.2-1% if high tariffs persist.