India’s March-quarter GDP growth of 7.8 per cent and 7.7 per cent for FY 26 is impressive against the backdrop of persistent headwinds facing the economy. But the worry is the RBI’s FY27 outlook at 6.6 per cent, down from a forecast of 6.9 per cent in April this year. It basically means the “easy” part of the post-pandemic recovery is over; the easy gains from the post-COVID rebound are now behind us; the investment cycle is much more sensitive to global interest rates and investor mood. And on the demand side, urban areas are still spending strongly, but the rural economy is recovering slowly and unevenly.

So a 6.6-6.7 per cent band in FY27 indicates that the higher growth posted earlier will be........

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