'Sustaining growth will require...': Finance Ministry warns of geopolitical, supply-chain risks; projects 7.3% Q2 growth
Mint 1 hr ago·1 Oct 2026, 10:55 am
The Finance Ministry has projected India's Gross Domestic Product (GDP) to grow at 7.3% in the second quarter of FY27, following a strong 7.8% performance in the previous quarter. This indicates the economy remains resilient despite global headwinds. However, officials have cautioned that sustaining this momentum will be challenging due to rising geopolitical tensions, supply-chain disruptions, and volatile energy prices.
For investors, this outlook suggests a mixed environment. While the domestic economy continues to expand, the external risks could impact corporate earnings and market sentiment. Global financial conditions are tightening, which may influence foreign capital flows into Indian equities. Investors should monitor how companies navigate these uncertainties and whether the government's policies can mitigate the impact of external shocks.
Moving forward, the key focus will be on the government's policy responses and corporate performance in the coming quarters. Traders should keep an eye on global cues, particularly regarding energy prices and geopolitical developments, as these factors could significantly influence market volatility and growth trajectories in the near term.
Excerpt from Mint
Finance Ministry expects India’s Q2 FY27 growth at 7.3%, following 7.8% in Q1, but warns geopolitical tensions, supply-chain disruptions, volatile energy prices and tighter global financial conditions could pose risks to growth. The Finance Ministry expects India's real economic growth to moderate to 7.3% in the…Read the original at Mint
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