India recorded a robust 7.8% GDP growth in Q1 FY26
India recorded a strong GDP growth rate of 7.8% in the first quarter of FY26 (April-June 2025), marking the fastest expansion in five quarters and surpassing the 6.5% growth witnessed in the same period last year. This robust performance was driven by buoyant activity in the manufacturing, services, and construction sectors, highlighting the economy’s resilience despite external challenges such as the US imposing steep tariffs on Indian goods. The growth reflects solid domestic demand, supportive government policies, and continued momentum in key sectors, reinforcing India’s position as the world’s fastest growing major economy amid global uncertainties.
India’s economy demonstrated remarkable resilience in the first quarter of FY26 by recording a robust GDP growth of 7.8%, significantly outperforming the 6.5% growth seen in the same period last year. This growth marks the fastest expansion in five quarters and underscores strong domestic demand and healthy performances in key sectors such as services, manufacturing, and construction. The agriculture and allied sectors also showed improved growth at 3.7%, up from 1.5% in the previous year. While certain sectors like mining experienced contraction, the overall economic momentum was supported by a surge in government spending and increased capital formation.
Despite facing global headwinds, including the impact of US tariffs that pose risks to export-driven sectors, India’s economy has maintained a growth trajectory bolstered by consumption and investment. The nominal GDP at current prices increased by 8.8%, reaching ₹86.05 lakh crore, reflecting broad-based growth across the economy. The robust services sector growth, especially in defense, public utilities, and financial services, played a critical role in driving the expansion. These numbers highlight India’s position as the fastest-growing major economy globally and set the stage for continued economic progress amid evolving global challenges.
India’s economy demonstrated remarkable resilience in the first quarter of FY26 by recording a robust GDP growth of 7.8%, significantly outperforming the 6.5% growth seen in the same period last year. This growth marks the fastest expansion in five quarters and underscores strong domestic demand and healthy performances in key sectors such as services, manufacturing, and construction. The agriculture and allied sectors also showed improved growth at 3.7%, up from 1.5% in the previous year. While certain sectors like mining experienced contraction, the overall economic momentum was supported by a surge in government spending and increased capital formation.
Despite facing global headwinds, including the impact of US tariffs that pose risks to export-driven sectors, India’s economy has maintained a growth trajectory bolstered by consumption and investment. The nominal GDP at current prices increased by 8.8%, reaching ₹86.05 lakh crore, reflecting broad-based growth across the economy. The robust services sector growth, especially in defense, public utilities, and financial services, played a critical role in driving the expansion. These numbers highlight India’s position as the fastest-growing major economy globally and set the stage for continued economic progress amid evolving global challenges.