{
  "id": 11144949,
  "title": "India GDP Growth Seen At 7.3% In Q2 FY27 Amid Geopolitical, Trade Risks: Finance Ministry In Sep Economic Review",
  "url": "https://urgent.news/2026/10/01/india-gdp-growth-seen-at-7-3-in-q2-fy27-amid-geopolitical-trade-risks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T07:53:00.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/india-gdp-growth-seen-at-73-in-q2-fy27-amid-geopolitical-trade-risks-finance-ministry-in-sep-economic-review"
  },
  "original_language": "en",
  "account": "India's economy is projected to grow by 7.3% during the second quarter of fiscal year 2027, according to the Finance Ministry's real-time calculations. However, the ministry has cautioned that economic growth has slowed recently and geopolitical, trade, and financial uncertainties could impact future projections. In its September Monthly Economic Review, the ministry reported that growth persisted into Q2 FY27 but at a reduced rate. The proportion of generated invoices via the electronic way bill system increased and manufacturing Purchasing Managers' Index (PMI) growth rose, while services activity improved in August due to a higher number of new businesses and employees. The nowcasting projection, first introduced in the Economic Survey this year, follows a 7.8% real GDP expansion in the April-June quarter. External risks are casting a shadow over India's growth outlook. High-frequency indicators from July and August indicate a degree of moderation following a robust first-quarter performance. The Finance Ministry also pointed to ongoing uncertainty in India's trade relations with the United States. The review mentioned the Graham Bill and its presidential approval, which empowers the US President to impose tariffs of up to 100% on countries importing Russian crude oil. The ministry noted that the global artificial intelligence investment surge is affecting international capital flows, as developed economies vie to attract investments related to new manufacturing capacity. India, like other emerging economies, faces challenges in drawing capital. Despite this, net foreign direct investment is anticipated to perform better in FY27 compared to FY26. Net FDI grew to $13.4 billion between April and July 2026 from $9.7 billion a year earlier, while gross FDI reached $43.9 billion. The Finance Ministry identified several risks to inflation, including climate conditions, geopolitical tensions, and tighter monetary policies. It warned that a robust El Niño could negatively affect the upcoming Rabi crop through heat stress and reduced soil moisture, although a favorable Indian Ocean Dipole could partially mitigate the impact. Higher crude oil prices and geopolitical tensions could exacerbate imported inflation, while festive demand and climbing input costs may exert near-term pressure. Retail inflation reached 4.82% in August, with food inflation at 5.95%. Core inflation climbed to 4.16% from 3.86% in July, while wholesale inflation rose to 9.92%.",
  "summary": "India’s economy is expected to expand 7.3% in the second quarter of FY27, according to the Finance Ministry’s nowcasting model. However, the ministry has cautioned that economic momentum has moderated and that geopolitical, trade and financial uncertainties could affect the outlook. In its September Monthly Economic Review, the ministry said growth had continued into Q2 FY27 but at a slower pace.…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}