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Economics3h 11m ago

India's 7.7% real GDP expansion in 2025-26 is largely a result of low inflation, with the effect of weak nominal growth most acutely felt in agriculture, where prices fell and incomes suffered.

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India

Who
Himanshu, an Associate Professor in Economics at Jawaharlal Nehru University
What
India's 7.7% real GDP expansion in 2025-26 is largely a result of low inflation, with the effect of weak nominal growth most acutely felt in agriculture, where prices fell and incomes suffered.
When
Thu, 11 Jun 2026 06:31:05 GMT · 3h 11m ago
Where
India ·
Why
A sharp decline in nominal growth for agriculture (1.4% from over 8% in previous years) due to falling agricultural prices has led to a broader demand slump and impacted farmer incomes and private consumption.
The Frontline Impact

How this affects you

India faces challenges in sustaining economic growth due to weak agricultural incomes, declining private consumption and investment, and pressure from falling foreign investments. The economic situation is further complicated by rising inflation from war-led disruptions and the anticipated severe El Niño phenomenon.

Story chain

3 events in this thread
  1. Economics1h 44m ago
    Surging inflation and El Niño can disrupt consumer demand momentum from 2Q27, likely increasing India's fiscal burden by up to Rs 5 trillion.
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  2. Economics1h 49m ago
    Congress leaders held a crucial strategy meet with general secretaries and state unit chiefs to chart the party’s roadmap.
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  3. Currently Reading3h 11m ago
    India's 7.7% real GDP expansion in 2025-26 is largely a result of low inflation, with the effect of weak nominal growth most acutely felt in agriculture, where prices fell and incomes suffered.

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