India, July 3 -- India's economy remains on a sustained growth path supported by strong macroeconomic fundamentals, government officials said. Ebbing external pressures from the West Asia conflict have stabilized this trajectory, allowing for planned fiscal discipline.

The government has maintained its emphasis on capital expenditure despite an unexpected rise in fuel and fertiliser subsidies caused by a prolonged blockade at the Strait of Hormuz, a key sea route responsible for one-fifth of global energy supplies, the officials said, asking not to be named. The capex push has extended into the 2026-27 financial year. In April and May 2026, capital expenditure stood at Rs.2.51 lakh crore compared to Rs.2.21 lakh crore during the same per...