New Delhi, Jan. 28 -- On the surface, India appears to have the ultimate Goldilocks economy: one of the highest GDP growth rates in the world with historically low inflation-exactly what any government would want. In theory, this should give the government tremendous flexibility and room in the upcoming budget. However, drill down a little deeper and gaps begin to appear that will result in some furrowed brows.

As per the statistics ministry's first advance estimates for 2025-26, India's real GDP is estimated to grow at 7.4%, which makes India arguably the world's fastest growing major economy. However, nominal GDP, or GDP in current rupee terms, is projected to grow only 8%. This is against a two-decade average of approximately 12%.

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