India growth may slow to 5.5-6% in H2FY27 as capex moderates: Report

India's economic growth is projected to slow down in the second half of the financial year 2026-27. This slowdown is expected to be driven by a moderation in capital expenditure growth, which is expected to decrease from 13.2% to around 4%. The central government's capital expenditure growth will also weaken due to a decline in its fiscal position. This slowdown in growth may have implications for the Indian economy, particularly for industries that rely heavily on government spending.

Why it matters

India's economic growth is projected to slow down in the second half of 2026-27. This slowdown may lead to decreased investor sentiment and lower stock prices.

Market impact

Markets & countries in focus

Transmission channels

Likely winners & losers

Explore the intelligence

MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.