The RBI raised its rate to 5.5%. It expects inflation of 5.8%.
India's first rate hike in 3 years 8 months takes the repo rate to 5.50%. The RBI's own forecast puts inflation at 5.8% for October 2026 to June 2027.
CapitalVia Research Desk ·
Data Story
9 September 2026
9 September 2026
India · GDP Q1 FY 2026-27
The economy grew 7.8%.
You weren't the reason.
April–June 2026 was not a shopping quarter. It was a buying-machines quarter.
34.3%
of India’s GDP went into fixed investment last quarter — factories, machines, roads, buildings. That share has moved 2.9 percentage points in a single year.
A year ago: 31.4% → 34.3%
Real growth, Apr–Jun 2026
Year-on-year, at constant 2022-23 prices
Investment (GFCF)
11.9%
Whole economy (GDP)
7.8%
Household spending
7.1%
Government spending
4.3%
Investment grew 1.7× faster than household spending. A year earlier the order was reversed — investment 5.8%, households 6.8%.
Keep scrolling▾
The number nobody expected
+51.5%
Import of machinery & equipment, Q1 FY27.
Indian companies are re-tooling — and buying the tools abroad.
The capex trail
Year-on-year growth, Apr–Jun 2026
+27.0%
Electrical equipment output (IIP)
+20.1%
Goods-transport vehicle registrations
+18.3%
Commercial vehicle sales
+15.2%
Capital goods output (IIP)
Why this lands on your desk
- SalariedHiring follows capex with a lag. Construction value added grew 16.5% in rupee terms (7.7% after inflation) and capital-goods output 15.2% — engineering, projects, plant and infra roles are where the openings are forming, not in consumer-facing teams.
- FoundersHousehold spending grew 7.1%; business investment grew 11.9%. For now, the faster-growing rupee is a B2B rupee.
- LeadersImports rose 30.9% in value while exports rose 25.8%. A capex cycle funded by imported equipment widens the trade gap before it widens capacity.
More from Insights
All stories₹1.96 lakh crore flowed into government small savings in five months. That is 73% more than a year ago.
Net inflow into government small-savings schemes hit ₹1.96 lakh crore in April–August 2026, against ₹1.14 lakh crore a year earlier. That is 74% of the full-year Budget estimate.
A new bank FD beats inflation by 0.85 points. Before tax.
New fixed deposits earned 5.67% in August against 4.82% inflation. The 0.85-point cushion was 2.92 points in January, and tax wipes it out from the 15% slab up.