Hyderabad: India’s GDP recorded a strong growth of 7.8% in the first quarter of FY26, marking its fastest pace in five quarters. The Ministry of Statistics released provisional estimates on Friday, crediting robust manufacturing activity and a buoyant services sector for the expansion.
Officials said agriculture contributed moderately due to uneven rainfall, but the manufacturing sector grew by 8.5% while services expanded by 9.2%, led by trade, transport, finance and real estate.
India’s GDP Growth driven by domestic demand and investments
Economists said strong domestic consumption, government-led capital expenditure and private investments boosted India’s GDP growth. Rising urban demand for goods and services also contributed significantly.
The Reserve Bank of India projected FY26 GDP growth at 7%, but the Q1 figure surpassed expectations, indicating resilience in Asia’s third-largest economy despite global uncertainties.
However, experts cautioned that inflationary pressures, especially from food and energy, could weigh on growth in the coming quarters. They also highlighted risks from global trade tensions and volatile crude oil prices.
Finance Ministry officials welcomed the data, saying the numbers reflected India’s structural strength and policy support. They expressed confidence that growth momentum would continue with sustained reforms and infrastructure spending.
