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Business
Finance Ministry projects GDP growth to slow to 7.35% in Q2 FY27
✍️ Deccan Herald
🗓 30 Oct 2026, 06:44 AM
👁 1
The Ministry of Finance said India's GDP growth is likely to moderate to 7.35% in the second quarter of fiscal year 2027.
New Delhi – The Ministry of Finance released a provisional estimate indicating that India's gross domestic product is expected to grow at 7.35% in the second quarter of FY27, a slight slowdown from the pace recorded in the preceding quarter. The projection was disclosed in a statement to the media on Monday, citing the latest data from the Central Statistics Office.
Analysts note that the moderation reflects a combination of factors, including a deceleration in private consumption and a tighter global monetary environment. The previous quarter had shown a growth rate of around 7.6%, marking the economy's strongest performance in recent years.
The ministry emphasized that the slowdown does not signal a structural weakness but rather a natural ebb as the economy transitions from post‑pandemic recovery to a more sustainable expansion path. It also highlighted ongoing fiscal reforms and infrastructure spending as buffers against any prolonged slowdown.
Looking ahead, officials expect the growth rate to stabilize around the mid‑single digits for the remainder of FY27, contingent on external demand and domestic policy support.
Analysts note that the moderation reflects a combination of factors, including a deceleration in private consumption and a tighter global monetary environment. The previous quarter had shown a growth rate of around 7.6%, marking the economy's strongest performance in recent years.
The ministry emphasized that the slowdown does not signal a structural weakness but rather a natural ebb as the economy transitions from post‑pandemic recovery to a more sustainable expansion path. It also highlighted ongoing fiscal reforms and infrastructure spending as buffers against any prolonged slowdown.
Looking ahead, officials expect the growth rate to stabilize around the mid‑single digits for the remainder of FY27, contingent on external demand and domestic policy support.