
India's economy is experiencing a 'goldilocks period' characterized by high growth and low inflation, with real GDP growth reaching 8.2% in Q2 2025-26 and retail inflation falling below 2%. The nation has surpassed Japan to become the world's fourth-largest economy and is projected to overtake Germany by 2030. The government plans further reforms and capital expenditure measures to sustain this momentum, despite global uncertainties and some currency pressures. Efforts are also underway to update national accounts methodology.
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