State of the Economy
- Global Context: Growth is resilient but the environment remains fragile due to geopolitical tensions, trade fragmentation, and financial vulnerabilities, with lagged shocks possible.
- India’s Growth: FY26 First Advance Estimates project 7.4% real GDP and 7.3% GVA growth; India is the fastest-growing major economy for the 4th consecutive year.
- Consumption (Private Final Consumption Expenditure): Grew 7.0% in FY26 to reach 61.5% of GDP (highest since 2012; tied with FY23), driven by low inflation, rural agriculture recovery, and urban tax rationalization.
- Investment (Gross Fixed Capital Formation): Increased 7.8% in FY26, maintaining a steady 30% share of GDP, supported by ....
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