Economists flag low nominal growth, global uncertainties

SUSTAINABLE GROWTH POSSIBLE WITH FISCAL, MONETARY COORDINATION

- FE BUREAU

INDIA'S ECONOMY IS projected to grow at a robust 7.4% in 2025-26, in line with market expectations, but economists cautioned about moderation in the second half of the financial year amid global headwinds, softer nominal growth and an uneven sectoral outlook.

The first advance estimate (FAE) of the National Statistical Office (NSO) pegs real GDP growth at 7.4% and gross value added (GVA) at 7.3%. Rating agency Icra noted the estimates implicitly place second-half growth at 6.9% for GDP and 6.8% for GVA, marking a slowdown from the 7.9-8% expansion recorded in the first half.