New Delhi, Nov 27 || The confluence of well-anchored inflation expectations, sustained public capital expenditure, and firming rural and urban demand places the Indian economy on a stable footing, positioning it to navigate emerging risks and preserve its growth momentum through the remainder of FY26, according to the Finance Ministry’s Monthly Economic Review released on Thursday.
India’s overall macroeconomic environment remains stable, supported by easing inflation, resilient domestic demand, and continued policy momentum. The favourable impact of GST rationalisation is increasingly visible in consumption indicators, while robust agricultural activity — reflected in the strong onset of Rabi sowing and adequate reservoir levels — has reinforced the outlook for food supply and rural incomes, the Ministry's Review for the month of October states.
Corporate performance remains healthy, with sustained profitability and stable balance sheets. Domestic financial markets continue to draw strength from firm institutional participation. Meanwhile, the external sector remains shaped by a complex global environment, although the persistent strength in services exports provides an important counterbalance to the volatility in merchandise trade, the Review further states.