India’s GDP growth for Q3FY26 is projected at 7.4%, easing from 8.2% in Q2. The moderation stems from weaker government spending, subdued exports, and statistical adjustments. While festive consumption supported demand, external headwinds and fiscal tightening weighed on overall momentum, signaling a recalibration of India’s growth trajectory.
India’s economy expanded at a slower pace in the October–December quarter of FY26, with GDP growth likely moderating to 7.4% compared to 8.2% in the previous quarter. Analysts highlight that the dip reflects a combination of policy recalibration, global trade challenges, and methodological changes in data measurement.
Key Highlights
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Government Spending: Reduced fiscal expenditure dampened investment-led growth.
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Exports: Weak global demand and trade headwinds dragged down merchandise shipments.
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Festive Consumption: Household demand remained resilient during the festive season, aided by GST tweaks.
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Data Adjustments: New base year and deflator changes reshaped growth calculations.
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Sectoral Trends: Manufacturing and services showed strength, while agriculture growth remained modest.
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Future Outlook: FY26 GDP growth is pegged at 7.4%, with FY27 expected between 6.8–7.2%, driven by consumption and investment.
India’s growth remains strong relative to global peers, but sustaining momentum will require export competitiveness, calibrated fiscal support, and structural reforms to balance domestic resilience with external challenges.
Sources: Times Now, Press Information Bureau, The Economic Times