Why Nominal GDP, Not Real Growth, Is The Real Budget 2026 Challenge: Top Economists Share View

Описание: As India heads into Budget 2026, economists are rethinking long-held assumptions about growth and stability. With inflation at multi-decade lows and nominal GDP losing momentum, policymakers face a new challenge: reviving revenues, earnings and debt dynamics in a world where disinflation may be structural rather than cyclical.

Top economists now warn that too little inflation and sluggish nominal GDP growth have become a problem—hurting government revenues, corporate earnings and even debt consolidation plans. The focus is shifting decisively from real GDP to nominal GDP, a transition that could define both the Union Budget and market outcomes in FY27.


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