Lucknow, Read: A new report has come out regarding the times ahead for the Indian economy. Radhika Rao, senior economist of the famous financial institution DBS Bank, has recently expressed her views on the economic future of India. According to him, there may be a slight slowdown in the country's economic growth rate in the second half of the current financial year 2026-27.
It's been a great start
According to the report, India's economy has made a very strong start in the first quarter of this financial year. Domestic demand, spending by people (consumption), spending by government (capital expenditure) and manufacturing (work in factories and production) have been in quite good condition in the country. Thanks to all this, India's growth rate (GDP growth) was recorded at 7.8 percent in the first quarter. DBS Bank estimates that the country's average economic growth rate during the entire financial year 2026-27 may be around 7.3 percent, whereas in the last financial year (2025-26) it was 7.8 percent.
Why could there be a slowdown in the second half?
Economist Radhika Rao believes that some challenges may arise in the last months of the year, which may slow down the pace a bit:
1. Strict financial conditionsDue to strict rules regarding money transactions and loans in the market, business and investment may be affected.
2. High energy prices- The cost of manufacturing and transporting goods is increasing due to rising costs of electricity, fuel and energy across the world.
3. Base effect – Due to last year's figures being high, it will be a bit challenging to cross that level this time.
Talk of relief and future situation
Despite these minor hindrances, economic activity within the country still remains quite strong. This can be gauged from the fact that the figures of GST collection, e-way bill, electricity consumption and online digital payment are continuously improving.
On the other hand, to keep the pressure of rising inflation under control, experts believe that the main focus of the Reserve Bank (RBI) and the government will be only on 'price stability' (ie keeping inflation under control). Overall, the Indian economy rests on a strong foundation, but the pace may moderate slightly in the coming months due to some external and internal pressures.
Report- Arpit Shukla
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