India’s Q2 FY26 GDP growth of 8.2% reflects strong momentum in manufacturing, services and corporate profitability, supported by policy-driven public investment. However, the weak nominal GDP growth, low GDP deflator, slowing agriculture, soft rural demand and subdued private investment reveal underlying structural pressures. These trends raise concerns about fiscal space, data reliability and the durability of the recovery, highlighting the need for broader demand strengthening, rural income support, and revival of private capital formation to ensure sustainable and inclusive growth.
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