India’s economy expanded by 7.8 percent in the first quarter (April–June) of FY 2025-26, surpassing analysts’ expectations and signaling continued momentum despite global uncertainties and inflationary pressures. According to data released by the National Statistics Office (NSO) on Friday, real GDP, which accounts for inflation, rose to Rs 47.89 lakh crore from Rs 44.42 lakh crore in the same quarter last year.

Meanwhile, nominal GDP, including the impact of inflation, reached Rs 86.05 lakh crore, marking an 8.8 percent increase from Rs 79.08 lakh crore in April–June 2024.

The agriculture sector emerged as a key driver, growing 3.7 percent compared to 1.5 percent in the same period last year, supporting rural income and boosting overall economic performance. The manufacturing sector also performed steadily, recording a 7.7 percent growth, slightly up from 7.6 percent last year, indicating sustained production activity.

India continues to hold its position as the fastest-growing major economy globally. In comparison, China’s economy grew only 5.2 percent during the same period, highlighting India’s strong economic momentum.

The Q1 growth has also exceeded earlier predictions by the Reserve Bank of India (RBI), which had forecasted 6.5 percent for Q1 FY26, 6.7 percent for Q2, 6.6 percent for Q3, and 6.3 percent for Q4. This stronger-than-expected start reflects India’s economic resilience, driven by agriculture and manufacturing, and positions the country to outperform global peers despite potential challenges such as global trade tensions and US tariffs.