Overview

• Official data show services up 9.3% with manufacturing at 7.7% and agriculture at 3.7%, while mining contracted 3.1% and utilities grew 0.5%.
• Central government capital expenditure jumped about 52% year on year, lifting investment as gross fixed capital formation rose 7.8% and household consumption grew 7.0%.
• Nominal GDP increased 8.8% as the GDP deflator fell to a multi‑year low near 0.9%, a technical boost that analysts say narrowed the real‑nominal gap and could strain fiscal math.
• Washington has raised tariffs on Indian imports to as high as 50%, and economists highlight front‑loaded shipments ahead of the levy as a factor that may reverse in coming quarters.
• Chief Economic Adviser V Anantha Nageswaran cited macro stability and maintained a 6.3%–6.8% growth band for FY26, while researchers flagged soft‑deflator and front‑loading effects and said the surprise likely reduces the case for near‑term rate cuts.