Datanomics: India's nominal GDP growth rate likely to remain subdued

Lower deflators are expected to lift real growth again, offsetting weak corporate numbers and muted nominal expansion

India’s second-quarter gross domestic product (GDP) numbers for 2025-26 (Q2FY26) are scheduled for release on November 28 (Friday), with most economists projecting a real economic growth rate of  7–7.6 per cent. If they are right, this would be lower than the Q1FY26 GDP growth rate but higher than the rate for most quarters of FY25.  However, this growth may be propelled to a large extent by soft deflators — the inflation rate in a broader sense. As such, the nominal GDP growth rate may remain subdued. 

Low prices keep real growth strong

 

In Q1FY26, the nominal GDP