Can India Sustain 8%+ Growth? Inflation And Other Challenges Explained

India’s second-quarter GDP growth of 8.2% stunned economists and investors, far exceeding expectations and signaling strong underlying domestic demand despite weak export performance. According to experts, high-frequency indicators such as auto sales, two-wheeler numbers, retail consumption and festive-season spending are outperforming, showing resilience in the economy. Markets initially reacted negatively due to concerns around inflation, IMF commentary and external risks, but sentiment has since improved with Nifty hitting fresh intraday highs. If the momentum continues through Q3, full-year growth could reach 7.5% to 7.8%, even with a softer Q4. Analysts believe FY27 may moderate due to a high base, but India’s growth outlook remains robust and consumption-driven.