Finance ministry projects 7.3% Q2 growth as economy maintains momentum
The Indian finance ministry projects a 7.3% GDP growth for the second quarter, showing resilience despite a slight slowdown from the previous quarter. The report highlights strong industrial activity, robust bank credit, and favorable monsoon conditions as key drivers for the economy.
Why it matters
As one of the world's fastest-growing major economies, India's economic performance serves as a critical indicator for global emerging market stability and investment trends.
India’s economy is estimated to have grown 7.3% in the September quarter of the current financial year, slowing from the 7.8% expansion recorded in the April-June period, according to the finance ministry’s latest Monthly Economic Review released on Thursday.The ministry said the economy had started FY27 on a firm footing despite growing uncertainty in the global environment. Its nowcasting measure, introduced in the Economic Survey earlier this year, projected real GDP growth of 7.3% for the second quarter.India recorded 7.8% real GDP growth in the first quarter, the highest first-quarter growth in the current GDP series.Economic activity remains firm despite slower momentumThe ministry said the growth momentum seen in the June quarter had continued into the second quarter, although at a more measured pace.Some indicators showed signs of moderation, with e-way bill generation and the manufacturing Purchasing Managers’ Index (PMI) growing more slowly.At the same time, services activity strengthened in…
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