India’s economic engine is slowing down. The second half of FY27 could see growth dip to 5.5–6%, according to a CLSA report, after a strong start that saw capital spending surge early in the year. The Centre and states together spent 13.2% more on infrastructure from April to August 2026 than the same period last year — down from a 20% jump in FY26. That momentum won’t hold. CLSA expects capital expenditure to fall to just 4% between September 2026 and March 2027, below the 5% seen in the same window last year. Why? Money ran out faster than expected. The Centre’s fiscal deficit hit 41.9% of its annual target by August, its worst level in six years. A sharp drop in receipts during August was the main culprit. Spending rose 10.5% but that’s down from 13.8% a year earlier. States aren’t faring better: their capital outlay grew 10.4%, down from 15.4%. Defence spending might pick up, but roads and railways? Flat or worse. Even with central investment still growing at 15.2% in the first five months, the window for big spending is closing. Meeting full-year targets now looks like a best-case scenario. Rural conditions remain weak. So does confidence. The economy’s first-half burst may have been a sprint. The second half? A crawl.