Our Bureau
Mumbai
There is finally some good news for India amidst the tariff crisis caused by the United States President, Donald Trump. The Gross Domestic Product of India has grown by 7.8% in the first quarter of this financial year, better than the estimated rate of 6.5%. It was also reported that the figure has also grown higher by 1.3% points than what they were in the same timeframe last year.
In the April-June quarter of the last fiscal year, the GDP of India had shown a very healthy growth and had increased by 6.5%. Not only that, the growth in the same quarter in the year 2025-2026 showcases the fastest rise in the past five quarters. The previous highest growth that the country’s GDP had shown was 8.4% in the January-March quarter of 2024.
With the growth that India’s GDP has shown, the country has retained its status of being the fastest growing major economy. China, on the other hand, had a lower growth rate than India with 5.2% GDP growth in April-June quarter.
It was reported by the National Statistical Office (NSO) that India’s growth was driven by the services and the agricultural sectors, which saw a rise of 9.3% against 6.8% last year and 3.7% against 1.5%, respectively, in April-June last year. The growth of the construction sector however slowed to 7.6% this year compared to the 10.1% last year.
The Governor of Reserve Bank of India, Sanjay Malhotra spoke on how the lower inflation and congenial financial conditions along with other factors are the backbone that support domestic economic activity. He also stated that we can expect the surging services sector to sustain its growth.
He said, “The above normal southwest monsoon, lower inflation, rising capacity utilisation and congenial financial conditions continue to support domestic economic activity. The supportive monetary, regulatory and fiscal policies, including robust government capital expenditure, should also boost demand. The services sector is expected to remain buoyant, with sustained growth in construction and trade in the coming months.”
