India Sees Domestic Demand Driving Growth as June Inflation Tops RBI's 4% Target
Updated
Updated · Mint · Jul 29
India Sees Domestic Demand Driving Growth as June Inflation Tops RBI's 4% Target
3 articles · Updated · Mint · Jul 29
Summary
India's finance ministry said first-quarter FY27 growth momentum held up on resilient domestic demand, even as renewed West Asia tensions and commodity volatility cloud the outlook.
4.38% June retail inflation, up from 3.93% in May, underscored the risk from rising food prices, erratic monsoon conditions and potentially higher crude costs.
5.0% June core-industry growth and a stronger services sector pointed to continued resilience, though high-frequency gauges such as e-way bills and manufacturing PMI softened.
9.5% year-on-year export growth in June, along with a services surplus, remittances and comfortable forex reserves, gave India buffers against external shocks.
3.0% global growth in 2026, according to the IMF update cited by the ministry, frames the challenge as India leans on reforms, macro management and food-stock measures to sustain expansion.