New Delhi, Oct 1: India’s economic momentum remains firm, with manufacturing, investment, exports and domestic demand continuing to support activity. A recent report has projected India’s third-quarter GDP growth at around 7.5 per cent, pointing to a resilient expansion despite a challenging global environment.
The assessment is based on a broad set of high-frequency economic indicators, many of which have shown improvement in recent months. The data suggests that economic activity has remained relatively well-supported across key sectors.
Manufacturing remains a key growth engine
Manufacturing activity has continued to strengthen, supported by improving orders and domestic demand. The sector has emerged as an important contributor to industrial growth, with businesses maintaining production and investment activity.
The improvement in factory activity also reflects stronger demand for goods and continued capacity utilisation across parts of the industrial economy.
Investment and exports add strength
Investment activity has remained another important pillar of growth. Public infrastructure spending and rising private-sector investments in areas such as technology, renewable energy and semiconductor manufacturing are supporting economic activity and creating new capacity.
Exports have also provided support, particularly in areas such as electronics and engineering goods. Stronger external demand, combined with India’s expanding manufacturing capabilities, is helping diversify the country’s growth drivers.
Domestic demand remains supportive
Consumption continues to provide a stable foundation for the economy. Improving employment opportunities, income conditions and consumer demand are supporting spending across several segments.
The resilience of domestic demand is particularly important as global economic conditions remain uncertain and external risks continue to affect emerging markets.
Risks remain in focus
Despite the positive growth signals, policymakers and businesses continue to monitor several risks. Higher crude oil prices, geopolitical tensions, global interest rates, inflationary pressures and currency movements could influence the pace of expansion.
Weather-related disruptions and elevated costs could also affect household consumption and business activity in some sectors.
Growth outlook
The projected 7.5 per cent Q3 growth highlights the continued resilience of the Indian economy. Strong industrial activity, investment, exports and domestic consumption are providing multiple sources of support.
As more official economic data becomes available, the performance of these sectors will remain important in determining how India’s growth momentum develops through the second half of FY27.