“India’s growth momentum, by comparison, has held firm. High-frequency indicators spanning industrial output, energy consumption, port traffic, GST collections, and automobile sales recorded stronger growth in Q2 FY27 than in the previous quarter,” it said in its monthly economic review.
India GDP growth was 7.8 per cent in the first quarter.
Reflecting favourable domestic trends, the IMF has raised its FY27 growth forecast for India to 7.0 per cent, while the World Bank, the OECD and the RBI project growth at 7.1 per cent, the review said.
“Overall, robust domestic demand, sustained investment activity, a resilient financial sector, and proactive supply-side management have underpinned India’s growth resilience so far,” it said.
“Uncertainties remain considerable. Amidst elevated crude oil prices, higher food inflation and uncertain outlook for the Kharif crop, sustaining economic activity while safeguarding price stability will be the focus of policymakers in the second half of the financial year,” the review noted.
India’s external position also remained supported by comfortable foreign exchange reserves, which stood at USD 721 billion as of 16 October 2026.
Going forward, increasing scale, domestic value addition, supply chain depth, and export competitiveness will remain important to broadening the manufacturing base, the report noted.