Stories
Indian Economy Surges 7.3% in Q2, FinMin Report Reveals Strong Growth
N
News18•01-10-2026, 19:15
Indian Economy Surges 7.3% in Q2, FinMin Report Reveals Strong Growth
- •The Indian economy is estimated to have grown by 7.3% in the September quarter of the current fiscal year, following a 7.8% growth in the June quarter.
- •The Monthly Economic Review report highlighted that India began FY27 on a firm footing despite global uncertainties, including the West Asia conflict.
- •High-frequency indicators like e-way bill generation, manufacturing PMI, services activity, electricity consumption, and bank credit show continued economic momentum.
- •A recent sovereign rating upgrade by Japan Credit Rating Agency from BBB+ to A- in September 2026 underscores India's strengthening economic fundamentals.
- •Favorable monsoon conditions and robust industrial activity, supported by strong manufacturing GVA growth, contribute to the positive outlook, though external risks persist.
Key Questions Answered
According to the finance ministry's Monthly Economic Review report, the Indian economy is estimated to have grown at 7.3 per cent in the September quarter of the current fiscal year.
In September 2026, the Japan Credit Rating Agency raised India’s sovereign rating from BBB+ to A-, which underscores the strengthening of the country's economic fundamentals.
Services activity firmed up in August driven by new business and employment, while electricity and fuel consumption, bank credit expansion, and capital and infrastructure goods production all showed continued strength.
