India growth may slip below 7% in second half, still average 7.2%: Sabnavis
BusinessLine 1 hr ago·6 Oct 2026, 1:11 pm
Chief Economic Advisor V. Anand Natarajan has revised India's growth outlook for the current financial year. He now projects the economy to expand by 7.2% on average, a slight reduction from previous estimates. This adjustment is primarily driven by a slowdown in private consumption, which has been dampened by high interest rates and sticky inflation. The revised forecast suggests that while growth remains robust, it is likely to moderate in the second half of the fiscal year compared to the first half.
For investors, this data signals a period of slower but steady expansion rather than a sharp deceleration. The economy is still growing at a healthy clip, which supports corporate earnings across sectors. However, the moderation in consumption growth could weigh on the performance of consumer-facing stocks. Investors should focus on companies with strong balance sheets and pricing power that can weather the current economic headwinds.
Excerpt from BusinessLine
India’s economic growth is likely to moderate below 7 per cent in the second half of the financial year, but the economy could still grow around 7.2 per cent for the full year, while its longer-term potential remains around 8 per cent, Economist Madan Sabnavis said. Speaking to ANI , Sabnavis said he expects growth of…Read the original at BusinessLine
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