Good news has come regarding the country’s economy.
War is going on in Iran since the end of February. Crude oil supply has come to a standstill all over the world. Due to which the prices of fuel are sky high and the crisis of inflation and recession is looming all over the world. Even after that, India’s economy is looking much better as compared to other countries of the world. According to a poll, the Indian economy would have ended the financial year 2026 in a strong position. Growth in the March quarter was boosted by strong domestic demand, agricultural activity and services, even though the latter part of the three-month period was adversely affected by the Iran war. However, economists said a sharp rise in crude oil prices and continued disruptions in energy supplies due to the conflict that began on February 28 could weigh heavily on growth this fiscal year.
this is the guess
Growth is estimated at 7.6 per cent in FY26 as strong January-February activity offset the impact of the Iran war in the March quarter. According to the average estimate of 10 economists, India’s gross domestic product (GDP) growth rate in the fourth quarter of the financial year is estimated to be 7.3 percent on a year-on-year basis, with forecasts ranging between 6.7 percent and 7.4 percent. Still, growth slowed to a three-quarter low of 7.8 percent in the third quarter and 8.4 percent in the second quarter. For FY26, economists have projected an average growth rate of 7.6 per cent, with estimates ranging between 7.4 per cent and 7.6 per cent. This is in line with the government’s estimate in February.
Government figures will come on June 5
The National Statistical Office (NSO) will release the official GDP data for the fourth quarter and provisional estimates for FY26 on June 5. Rajni Sinha, chief economist at CareEdge Ratings, said sectors such as mining, utilities, finance, real estate and professional services maintained their strong momentum in the three-month period ended March. Sakshi Gupta, principal economist at HDFC Bank, said the pace of economic activity remained strong in January and February, and this probably mitigated the impact of the conflict in March.
These are the main reasons for the rise
Radhika Rao, senior economist and executive director of DBS Bank, said that at the end of the March quarter, cost pressure was clearly visible in the supply chain. However, companies would have been able to withstand this pressure by using their inventory, and would not have made any significant cuts in production. Consumption remained strong in the fourth quarter, with retail sales of domestic tractors and two-wheelers growing by 23 percent and 25 percent, respectively. However, due to slow expansion pace in the manufacturing sector, the growth rate of industrial production declined from 5.2 percent in the third quarter to 4.8 percent.
