India’s economy is expected to grow by 7.3 per cent in the July-September quarter of FY27, the Finance Ministry said in its Monthly Economic Review for September, released on October 1. The projection is sharply above the Reserve Bank of India’s 6.4 per cent estimate for the same quarter.

The forecast comes from the ministry’s nowcasting measure, unveiled in the Economic Survey earlier this year. The economy entered the second quarter from a position of strength after recording 7.8 per cent growth in Q1, the highest first-quarter growth in the current series, IANS reported.

The review said domestic demand remained supportive and the investment rate reached its highest level in the current series. High-frequency indicators showed services activity strengthening in August, healthy electricity and fuel consumption, and sustained bank credit expansion.

The ministry cautioned that higher oil prices, tighter global financial conditions and trade uncertainty pose risks. Official Q2 GDP data is scheduled for release on November 30.