NEW DELHI, October 1 — The Department of Economic Affairs (DEA), Ministry of Finance, released its Monthly Economic Review on Thursday, projecting India's economy to grow at a robust 7.3% in the second quarter (Q2) of FY 2026–27.
The projection builds on the impressive 7.8% real GDP growth recorded in the first quarter (Q1) of FY27, driven by strong gross fixed capital formation, sustained public infrastructure spending, and resilient private consumption across manufacturing and services. The report emphasized that bank balance sheets remain sound, with non-food credit growth sustaining double-digit rates and corporate balance sheets showing high debt servicing capability.
The Finance Ministry nonetheless underscored that India must maintain prudent macroeconomic management in the face of ongoing geopolitical friction, international shipping disruptions, and potential crude oil price shocks.
Macroeconomic forecasting, GDP growth components, and quarterly fiscal reviews are core syllabus areas in economics for civil services and banking examinations. Candidates should remember that the Department of Economic Affairs (DEA) under the Ministry of Finance is the nodal agency responsible for drafting the Union Budget and the Economic Survey.