On the Q2 GDP growth data, domestic brokerage Motilal Oswal Financial Services said, “Given real GDP growth of 8% in 1HFY26, we expect FY26 growth to pick up to 7.5% (base case), up from our earlier expectation of 7%.” Despite the adverse impact of US tariffs on India’s manufacturing sector, domestic demand has so far managed to hold the growth strong.
As per Motilal Oswal, the GST cut-led pickup in consumption in Q2 and rise in government spending in Q3 should provide the necessary fill-up to offset the weak exports. Low inflation narrowed the gap between nominal and real growth rates.
“For FY26, we expect GDP growth of 7% on favourable monsoon, GST rate rationalization, and easier monetary policy. Headwinds remain from US tariffs and weaker global GDP growth,” said Anand Rathi Shares and Stock Brokers Ltd.
Brokerage Equirus Securities said 1H real GDP growth of 8% is higher than RBI’s projection of 6.8%. “We revise our FY26 GDP to 7.2%-7.5% vs RBI’s estimate of 6.8% with some slowdown expected in 2H with export drag and slower government capex due to revenue constraints and frontloading in 1H.”