2 publishers · first seen Thu, 29 Oct 2026 11:11 UTC · updated Thu, 29 Oct 2026 13:52 UTC
India's economy is projected to grow 7.35 per cent in the second quarter of FY27, following 7.8 per cent growth in Q1, according to the Finance Ministry's monthly economic review released on October 29, 2026. The growth is supported by strong industrial output, with the Index of Industrial Production rising 8.0 per cent year-on-year in August 2026 and Manufacturing growing 9.0 per cent. The Index of Core Industries grew 7.9 per cent in September, while the HSBC India Manufacturing PMI rose to 55.1. Merchandise exports increased by 23.1 per cent year-on-year, contributing to 11 per cent growth in total exports of goods and services.
Foreign exchange reserves stood at $721 billion as of October 16, 2026, providing 10.3 months of import cover. The financial sector remained resilient despite global volatility, with bank credit growing 21.6 per cent year-on-year. Policymakers will focus on sustaining economic activity and safeguarding price stability amid elevated crude oil prices, higher food inflation, and uncertainty over the Kharif crop. The effectiveness of recent rate hikes will depend on the central bank's liquidity management.
Content auto-generated. May contain inaccuracies.