India’s economy delivered a strong performance in the April–June quarter, with GDP growth rising to 7.8%, the fastest pace recorded in the past five quarters, according to data released by the government’s statistical office on Friday.
The growth rate comfortably outpaced economists’ estimates of 6.7% and also exceeded the previous quarter’s 7.4% expansion. In comparison, the economy grew 6.5% in Q1 FY25.
The Gross Value Added (GVA), which strips out the impact of indirect taxes and subsidies, stood at 7.6% during the quarter, compared to 6.8% in the January–March period and 6.5% a year ago. Economists often consider GVA a more stable gauge of underlying growth.
“This is a very impressive performance and higher than expected,” said Madan Sabnavis, Chief Economist at Bank of Baroda, noting that the broad-based expansion provides resilience against potential external shocks, including tariff pressures from the United States.
Sabnavis also explained that low price deflators contributed to the robust figure. While nominal GDP growth was just 8.8%, subdued inflation pulled down the deflator, boosting the real GDP outcome.
The upbeat Q1 results underscore India’s strong economic momentum, with experts suggesting that the performance offers a crucial cushion against global headwinds in the coming quarters.
