India GDP The Indian economy delivered a surprise upside in the April–June quarter of FY 2025-26, recording 7.8% GDP growth, higher than most market projections. The upbeat numbers reflect healthy industrial output, a pickup in investment activity, and sustained expansion in the services sector.
Analysts say the strong Q1 growth provides a solid foundation for the year ahead, though challenges remain in the form of uneven monsoon rainfall, persistent inflationary pressures, and global demand slowdown. Despite these risks, India’s domestic consumption and government-led capital expenditure have acted as key growth engines.
With this print, India has once again reaffirmed its status as a global growth leader. Economists believe that if inflation stays in check and reforms continue, the country could sustain growth above 7% for the full fiscal year.
The Indian economy delivered a surprise upside in the April–June quarter of FY 2025-26, recording 7.8% GDP growth, higher than most market projections. The upbeat numbers reflect healthy industrial output, a pickup in investment activity, and sustained expansion in the services sector.
Analysts say the strong Q1 growth provides a solid foundation for the year ahead, though challenges remain in the form of uneven monsoon rainfall, persistent inflationary pressures, and global demand slowdown. Despite these risks, India’s domestic consumption and government-led capital expenditure have acted as key growth engines.
With this print, India has once again reaffirmed its status as a global growth leader. Economists believe that if inflation stays in check and reforms continue, the country could sustain growth above 7% for the full fiscal year.