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India's Q2 Growth Hits 7.3% Amid Global Risks, Finance Ministry Warns
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News18•01-10-2026, 11:30
India's Q2 Growth Hits 7.3% Amid Global Risks, Finance Ministry Warns
- •India's economy is projected to grow by 7.3% in Q2 FY27, driven by strong domestic demand and investment, following a 7.8% growth in Q1.
- •The Finance Ministry's Monthly Economic Review for September 2026 highlights challenges from higher oil prices, tightening global financial conditions, and trade uncertainty.
- •High-frequency indicators show continued growth, with services strengthening in August and robust investment momentum indicated by electricity consumption and bank credit.
- •A strong export outlook is noted, with total merchandise and services exports rising 15.5% year-on-year to USD 399.3 billion during April-August FY27, potentially reaching a trillion US dollars for the full year.
- •Risks include rising retail inflation (4.82% in August), geopolitical polarization, intensifying competition for global investment, and the need for consistent policymaking and improved governance to sustain growth.
Key Questions Answered
India's economy is expected to grow by 7.3 percent in the second quarter of FY27, backed by resilient domestic demand and investment momentum.
India recorded a first-quarter growth of 7.8 percent, while total merchandise and services exports reached USD 399.3 billion during the April-August period of FY27.
Key risks include higher oil prices, tightening global financial conditions, trade uncertainties, geopolitical polarization, and rising retail inflation which reached 4.82 percent in August.
