India's Finance Ministry projects 7.35% Q2 FY27 GDP growth
Business
India's Finance Ministry just projected a 7.35% GDP growth for the second quarter of fiscal 2027, thanks to strong industrial activity, higher energy use, and better numbers in ports, GST collections, and car sales.
For context, the first quarter had already clocked in at 7.8% growth.
Finance Ministry lifts 2026 inflation forecast
Big names like the IMF and World Bank are upbeat about India's future; the IMF now expects 7% growth for fiscal 2027, but there's a catch.
The ongoing West Asia crisis is pushing up global prices, so the ministry has bumped up its inflation forecast for 2026 from 3.7% to 4.7%.
Higher inflation could mean tighter monetary policy and less spending power for everyone, which might slow down demand and, in turn, global trade.