New Delhi: India's economic growth could slow to 5.5-6 per cent in the second half of 2026-27 as government capital spending moderates after being front-loaded in the first half, with a weak rural sector, adverse base effect and an uncertain economic environment adding to the pressure, CLSA said in a report.
The report expects combined fiscal capital expenditure growth to slow sharply in the remaining seven months of FY27, after rising 13.2 per cent year-on-year in the first five months, while combined capex growth could moderate to around 4 per cent during September 2026-March 2027, compared with 5 per cent in the same period last year.
