NEW DELHI: Various domestic high-frequency indicators (HFIs) for the first quarter of 2026-27 (Q1FY27) point to sustained momentum in economic activity and domestic demand, Minister of State for Finance Pankaj Chaudhary said in the Rajya Sabha on Tuesday.
“Growth in the Index of Industrial Production (IIP) improved from 3 per cent in March 2026 to 7.3 per cent in June 2026, while growth in the core industries strengthened from 2.9 per cent to 5 per cent during the same period. Average consumer price index (CPI) inflation remained moderate at 3.9 per cent during April-June 2026,” Chaudhary said, adding that these domestic fundamentals were expected to support economic growth during the year.
The Ministry of Statistics and Programme Implementation (Mospi) is scheduled to release India’s Q1FY27 gross domestic product (GDP) estimates on August 31.
The minister, however, said the global economic environment remained volatile amid conflict in West Asia, which has heightened trade uncertainties. Brent crude oil prices had climbed to a peak of $138.2 a barrel in April, pushing up global energy prices and domestic producer inflation, before easing to $91.8 a barrel by July 27 as supply chain pressures moderated.
He said energy-intensive and trade-dependent sectors, including petrochemicals, chemicals, plastics, packaging, textiles, pharmaceuticals, automotive components and other manufacturing industries, remained relatively vulnerable to external shocks arising from energy price volatility.
Chaudhary said the government’s measures — including Customs duty exemptions on selected petrochemical feedstock, operationalisation of the Bharat Maritime Insurance Pool, Emergency Credit Line Guarantee Scheme, the Resilience & Logistics Intervention for Export Facilitation scheme, restoration of the Remission of Duties and Taxes on Exported Products, expansion of free trade agreements and diversification of crude oil import sources — were aimed at strengthening the economy’s resilience to external shocks.
Besides external headwinds, he said, a weaker monsoon due to the El Niño effect remained a key risk to economic growth this year. However, the impact on agriculture could not yet be quantified as the first advance estimates for major kharif crops for the 2026-27 agricultural year are yet to be released by the agriculture ministry.
The all-India cumulative southwest monsoon rainfall stood 14 per cent below the long period average as of July 31, but remained within the India Meteorological Department’s “normal” category.
“The government is continuously monitoring the evolving monsoon situation and its impact on the agriculture sector. Assistance to farmers and support for the rural economy continue to be available through various ongoing schemes and programmes,” the minister said.
Source: Business Standard
