Monthly Economic Review: India must be competition-friendly, says FinMin
Why in the news
The Finance Ministry’s Monthly Economic Review, released on 1 October 2026, said growth continued into the July-September quarter at a gentler pace and argued that India must become more competition-friendly, not just business-friendly.
Key facts
- Q2 FY27 growth: estimated at 7.3%, after a 7.8% expansion in Q1 FY27 (June quarter).
- Exports: combined goods and services exports were nearly $400 billion in the first five months of FY27; at this pace the full-year figure could approach $1 trillion.
- Services surplus: in August, the services trade surplus covered 65% of the merchandise trade deficit.
- Trade deals are said to be supporting export growth.
- Policy message: only a competitive economy can become a successful, innovative manufacturing economy.
- Positives: a better-than-expected monsoon and kharif sowing close to last year’s level.
| Indicator | Value |
|---|---|
| Q1 FY27 GDP growth | 7.8% |
| Q2 FY27 growth (estimate) | 7.3% |
| Exports, first five months | About $400 billion |
| FY27 exports (projected) | Close to $1 trillion |
| Services surplus vs goods deficit (August) | 65% offset |
Risks flagged
- Geopolitical polarisation and uncertainty; foreign portfolio investors (FPIs) pulling out funds.
- Rising global interest rates and bond yields.
- Inflation risk from supply shocks and crude oil prices.
- Unsettled India-US trade ties; the proposed US Graham Bill would let the US President levy tariffs of up to 100% on buyers of Russian crude oil.
About the Monthly Economic Review
The review is prepared every month by the Department of Economic Affairs (DEA) under the Ministry of Finance. It sums up recent trends in growth, prices, trade and external flows, and the government’s outlook.
Exam angle
- Monthly Economic Review is published by DEA, Ministry of Finance.
- Q1 FY27 growth 7.8%; Q2 FY27 estimate 7.3%.
- Exports may approach $1 trillion in FY27.