The Indian economy expanded by 7.8 percent in the April-June period, marking the highest growth in five quarters, prior to the implementation of disruptive US tariffs. This growth in the first quarter of the current fiscal year was largely driven by strong performance in the agricultural sector, according to government data. India continues to be the fastest-growing major economy, outpacing China, which recorded a GDP growth of 5.2 percent for the same period. The previous peak for GDP growth was 8.4 percent in the January-March quarter of 2024. The agriculture sector saw a growth of 3.7 percent, a rise from 1.5 percent in the April-June period of 2024-25, as per the National Statistical Office (NSO) data released on Friday.
Meanwhile, the manufacturing sector’s growth slightly increased to 7.7 percent in the first quarter of FY26, compared to 7.6 percent in the corresponding period last year. Earlier this month, the Reserve Bank of India projected that real GDP growth for 2025-26 would be 6.5 percent, with quarterly expectations of 6.5 percent for Q1, 6.7 percent for Q2, 6.6 percent for Q3, and 6.3 percent for Q4.