Bhubaneswar, Aug 29: India delivered a robust performance in the first quarter of its fiscal year 2025–26 (April–June 2025), with real GDP growth clocking in at an impressive 7.8%, marking a high unseen in five quarters.
This growth far exceeded expectations, surpassing RBI projections of 6.5% and analyst forecasts around 6.7%.
Sectoral highlights:
Services sector: The powerhouse behind growth, registering a remarkable 9.3% increase in real GVA, driven by trade, hotels, transport, and financial services.
Manufacturing and construction: Strong contributors with GVA growth at 7.7% and 7.6%, respectively.
Agriculture: Registered a steady 3.7% growth, up from 1.5% in Q1 of the previous fiscal.
Utilities/Mining: Continued lagging, with mining and quarrying showing a contraction, and utilities around 0.5% growth
Nominal Growth & Consumption:
Nominal GDP rose by 8.8%, reaching ₹86.05 lakh crore from ₹79.08 lakh crore last year.
Government final consumption expenditure rebounded sharply, up 9.7% in nominal terms (versus 4.0% YoY in Q1 FY 2024‑25).
Private consumption growth climbed to 7.0% in real terms, though slightly softer than the previous year’s 8.3%.
Gross fixed capital formation (a measure of investment) recorded a solid 7.8% real growth, compared to 6.7% last year.
Despite the upbeat Q1 numbers, India faces rising global headwinds: U.S. tariffs, particularly under the Trump administration, pose a threat to export‑dependent sectors like textiles and chemicals.
(With agency inputs)
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