India's Economy Shows 7.4% Growth Amid Fiscal Stimulus and Capex Slowdown

India's economy is projected to grow at 7.4% in FY26, maintaining its position as the fastest-growing large economy globally. This growth reflects a mix of fiscal and monetary stimulus, including tax cuts and trade agreements with the US and EU. However, slowing government capital expenditure in Q3 and tariff uncertainties have raised concerns about momentum cooling. While domestic demand and reforms support growth, cautious investor sentiment persists amid external and internal challenges.