New Delhi. A good news has come out regarding India's economy. The Finance Ministry has estimated the country's GDP growth to be 7.35 percent during the second quarter of the current financial year 2026-27, i.e. from July to September. Earlier, the economic growth rate in the first quarter of the financial year was recorded at 7.8 percent.
According to the Finance Ministry report, domestic demand in India remains strong. Along with this, the situation of industrial production, export and investment is also looking better. Many global agencies, including the World Bank and the International Monetary Fund (IMF), have also increased India's growth rate estimates to seven percent or more.
Concern about rising inflation
Despite the strong picture of the economy, some challenges also remain. The Finance Ministry has warned that rising crude oil prices and the effect of El Nino may increase pressure on inflation. In such a situation, special attention will be needed to keep prices stable in the second half of the financial year 2026-27.
The report states that retail inflation increased to 5.54 percent in September, while food inflation crossed seven percent. Prices of onion, sugar and edible oil remain a matter of concern. There is also a possibility of sugar prices increasing during the festive season.
Inflation pressure in global economy also
The problem of inflation is not limited to India only. According to the report, the inflation rate in America increased from 2.4 percent in January to 3.7 percent in September. At the same time, in Europe it increased from 1.7 percent to 3.8 percent during the last six months.
To control edible oil prices, the government has reduced customs duty on imported edible oil. Its effect is expected to be visible from next month. Despite inflationary challenges, India's strong domestic demand, investment and industrial activity are showing positive signs for the economy.