The Finance Ministry has estimated India's economic growth at 7.3 percent for the second quarter of the 2026-27 financial year, according to its Monthly Economic Review for September 2026.

The nowcast follows a strong first quarter, when the economy grew 7.8 percent — the highest in the current data series. India remains the fastest-growing major economy in the world.

The ministry said domestic demand continues to support growth, while flagging risks from crude oil prices, tighter global financial conditions and trade tensions linked to the United States.

It added that the outlook for the rest of the year will depend on how global conditions evolve and how quickly investment picks up across sectors.

Economists say the numbers signal resilience despite global uncertainty, but note that sustained private investment will be key to keeping growth above 7 percent.

The review also noted that rural demand has been holding up well, supported by a good monsoon, while urban consumption continues to recover. The ministry said it will watch incoming data closely before firming up its outlook for the second half of the year.