India’s Q1 GDP Growth Quickens to 7.8% as Consumption, Capex Offset US-Iran War Shock
- India's economy grew 7.8% in the April-June quarter, exceeding market expectations of 7.3% as strong investment helped offset the impact of the Iran war.
- Investment grew nearly 12% while the financial services sector increased 12.1%, demonstrating expansion across key economic drivers despite rising energy costs from the West Asia conflict.
- While slower than the revised 8.6% recorded in January-March, this growth surpassed The Reserve Bank projection of 7%. Loan growth reached 18.3% by the end of the April-June quarter.
- Economists note that while tax cuts boosted demand, the six-month-long Mideast conflict continues to constrain capacity expansion for many companies. The Indian government stated the economy 'has sustained growth momentum despite global headwinds.'
- Projections suggest 6.4% growth in July-September and 6.5% in October-December, with The Reserve Bank forecasting 6.7% growth for FY27 as momentum continues through ongoing geopolitical tensions.
43 Articles
43 Articles
GDP growth comes in at 7.8% in Q1, slower than last quarter but quicker than last year
The stronger performance in Q1 of this year as compared to last year has been driven by the manufacturing sector as well as some broad services categories such as utilities, financial services, real estate, IT, and public administration and defence.
VIEW India's GDP grows better-than-expected at 7.8% in April-June
PM Modi Calls India's 7.8% GDP Growth 'herculean Feat' Amid Global Uncertainties
Get latest articles and stories on Business at LatestLY. Prime Minister Narendra Modi on Monday described India's 7.8 per cent GDP growth in the first quarter of financial year 2026-27 as a "herculean feat", saying the country's growth came despite oil price shocks, supply chain issues and global uncertainties. Business News | PM Modi Calls India's 7.8% GDP Growth 'herculean Feat' Amid Global Uncertainties.
Despite a slight slowdown compared to the first three months of the year, Indian GDP grew significantly more than expected by analysts, in an uncertain international context.
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