Endurance test: On the Indian economy’s resilience

The article analyzes India's robust economic growth of 7.8% in Q1 FY26, driven by strong manufacturing and services sectors, and increased capital creation, partly aided by GST rate cuts and RBI interest rate reductions. However, it cautions that future quarters face significant headwinds, including high oil prices due to the West Asia crisis, a global economic slowdown impacting services exports, the potential impact of a deficient monsoon on rural demand, and rising inflation. The Prime Minister's appeal to buy local and reduce foreign spending is highlighted as a measure to manage the trade deficit.