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flag India’s economy to grow 7% in Q2 FY26, led by strong industry, exports, and rural demand.

flag India’s economy is projected to grow at 7% in Q2 FY26, driven by strong industrial output, rising exports, and robust rural demand, according to ICRA and economist surveys. flag Manufacturing surged 4.9%, exports rose 8.9%, and government capital spending remained elevated, though at a slower pace. flag The services sector slowed to 7.4% due to reduced public spending, while agriculture grew 3.5%. flag Morgan Stanley forecasts 6.5% GDP growth for FY27–28, supported by consumer spending, private investment, and expected tax reforms. flag The RBI is likely to cut rates to 5.25% in December 2025, with growth underpinned by domestic demand despite global trade risks.

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