India's economy grows faster-than-expected at 7.8% in the June quarter
Robust growth driven by manufacturing, construction, and services sectors, with government spending up 9.7% and nominal GDP rising 8.8%, despite increased US import tariffs.
- The NSO said in its Q1 release on Friday that India’s economy grew 7.8% in Q1 of FY 2025-26, with real GDP at Rs 47.89 lakh crore and nominal GDP at Rs 86.05 lakh crore.
- Domestic demand strengthened as private consumption rose 7.0% and investment expanded 7.8%, while government consumption rebounded 9.7% in nominal terms.
- Agriculture rose 3.7% in the quarter, public administration climbed 9.8% aided by 52% Centre capex growth, and exports increased 5.9% in the June quarter.
- U.S. tariffs — initially 25% and later up to 50% — could shave 30 basis points from India's full-year growth, Barclays economist Aastha Gudwani estimated, while analysts warn of global trade risks.
- The World Bank and IMF project FY26 growth at 6.3% and 6.4%, while economists expect GST rationalisation, RBI easing, and a favourable monsoon to support consumption.
46 Articles
46 Articles
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India’s economy has displayed robust growth, as the nation’s Gross Domestic Product (GDP) rose by an impressive 7.8% in the April-June period. This accelerative expansion marks the fastest pace in economic growth the country has witnessed in five quarters. This growth spurt came before former US President Donald Trump implemented certain tariffs. In a show of spectacular strategic aptitude, these tariffs only attested to the resilient nature of …
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