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India's Economy Set for 7.3% Growth in Q2FY27, Says Finance Ministry
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Forbes India•01-10-2026, 14:06
India's Economy Set for 7.3% Growth in Q2FY27, Says Finance Ministry
- •India's economy is projected to grow 7.3% in Q2FY27, indicating continued momentum despite a more measured pace than the record first quarter.
- •The Finance Ministry's report highlights a slowdown in e-way bill generation, manufacturing PMI, and IIP growth, alongside deficient monsoon rainfall affecting kharif sowing.
- •Price pressures have intensified due to renewed oil market pressure, weather volatility, and global DRAM chip prices, impacting food and consumer electronics.
- •Despite global headwinds like spiking oil prices and the US Graham Bill, India's services activity, bank credit, and capital goods output remain healthy, supported by strong exports and forex reserves.
- •The report notes robust investment cycles, healthy automobile sales, and government measures to shield the economy from global energy price volatility.
Key Questions Answered
India's economy is projected to grow by 7.3 percent in the July-September quarter of FY27, according to the Finance Ministry's monthly economic review.
External pressures include spiked oil prices, climbing global bond yields, a lower risk premium weighing on the rupee, and the US Graham Bill allowing up to 100 percent tariffs on Russian crude buyers.
Real GDP grew by 7.8 percent in Q1 FY27, representing the highest first-quarter growth in the current series, with real GVA expanding by 8.2 percent.
