India’s real economic growth looks healthy but fiscal space will shrink unless its nominal pace picks up

📅 Published: January 13, 2026 | 📂 Category: Uncategorized

Our growth numbers look reassuring, but slowing nominal GDP could constrain the Centre’s ability to take stimulus action through fiscal spending. Since debt must be reduced as a ratio of GDP, slower expansion in rupee terms makes less space for the government to borrow at today’s rate of interest.

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