Finmin pegs Q2 expansion at 7.35%,flags capital pressure over US yield
Economic Times 2 hrs ago·30 Oct 2026, 12:58 am
The finance ministry has pegged India's economic growth at 7.35% for the July-September quarter, driven by strong industrial activity, robust GST collections, and healthy consumer demand. This positive momentum suggests the domestic economy remains resilient despite global headwinds.
However, the report highlights significant risks for the remainder of the fiscal year. Elevated US bond yields are creating pressure on capital flows, while high crude prices and food inflation could dampen consumer spending. Investors should monitor the government's ability to manage these external pressures to sustain the current growth trajectory.
Looking ahead, the focus will be on the Reserve Bank of India's policy stance and the government's fiscal measures. A stable rupee and controlled inflation will be key factors for maintaining investor confidence in the broader market.
Excerpt from Economic Times
India’s economy is estimated to have grown 7.35% in the September quarter, supported by strong industrial output, GST collections, energy use, port traffic and auto sales, the finance ministry said. It expects domestic demand and investment to sustain momentum, while warning that high crude prices, food inflation,…Read the original at Economic Times
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