New Delhi, October 2: Indian economy is estimated to have grown 7.3% in the September quarter of FY27, according to the Finance Ministry’s latest Monthly Economic Review. The projected growth is lower than the 7.8% expansion recorded in the April-June quarter. The ministry said the economy started FY27 on a firm footing despite uncertainty in the global environment. Its nowcasting measure projected real GDP growth at 7.3% for the second quarter.
While some indicators, including e-way bill generation and manufacturing PMI, showed signs of moderation, services activity strengthened in August, supported by higher new business and employment. Electricity and fuel consumption also continued to grow, while bank credit remained strong.
The ministry said the investment cycle continued to show strength, with production of capital goods and infrastructure goods remaining firm. It also flagged risks from the conflict in West Asia, which has disrupted energy markets and trade routes, while geopolitical tensions and supply-chain disruptions continue to pose challenges.
The ministry said maintaining macroeconomic stability and strengthening economic resilience would be important to sustain growth. It also highlighted Japan Credit Rating Agency’s upgrade of India’s sovereign rating from BBB+ to A- in September.
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