Trade chambers on Friday stated that GDP progress of seven.8% for Q1 FY26 is a testomony to the Indian economic system’s resilience, indicators robust momentum at the beginning of the fiscal yr, and can assist enhance enterprise sentiments when the nation is going through international headwinds.
India’s actual GDP is estimated to have grown by 7.8% within the April-June quarter of the monetary yr 2025-26, surpassing the 6.5% progress fee in the identical quarter of the earlier fiscal, in accordance with official knowledge launched on Friday.
The Nationwide Statistics Workplace (NSO), Ministry of Statistics and Programme Implementation (MoSPI), launched the Quarterly Estimates of Gross Home Product (GDP) for the April-June quarter of monetary yr 2025-26.
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India’s nominal GDP grew at an 8.8% fee through the April-June quarter.
The Agriculture and Allied Sector noticed a Actual GVA (gross worth addition) progress fee of three.7%, in comparison with 1.5% in Q1 of the final monetary yr.
Secondary sectors, prominently Manufacturing (7.7%) and Development (7.6%), registered above 7.5% progress at fixed costs on this quarter.
Mining and Quarrying (-3.1%) and Electrical energy, Gasoline, Water Provide and Different Utility Providers (0.5%) noticed moderated actual progress charges throughout Q1 of 2025-26.
In 2024-25, the Indian economic system grew by 6.5% in actual phrases. The Reserve Financial institution of India had projected 6.5% GDP progress for the fiscal yr 2024-25.
Reacting to the expansion figures, ASSOCHAM President Sanjay Nayar stated India’s actual GDP surged by a strong 7.8% in Q1 of FY 2025-26, properly above the 6.5% recorded a yr earlier, signalling robust momentum at the beginning of the fiscal yr.
“The providers sector added additional energy with 7.6% actual GVA progress, reflecting deepening dynamism throughout key areas. This encouraging efficiency underscores India’s resilience and flexibility, reaffirming its vibrant progress trajectory and making certain the nation will confidently sail by means of prevailing international headwinds,” he stated.
Jyoti Vij, Director Common, FICCI, stated the GDP progress of seven.8% for Q1 FY26 is a testomony to Indian economic system’s resilience.
“The robust progress has come at a juncture when the nation is going through important international headwinds and can assist enhance enterprise sentiment. Indian trade will be capable of navigate near-term exterior challenges on the again of robust home demand, opening up new market alternatives by means of our latest commerce agreements in addition to numerous coverage measures, notably the upcoming rationalisation of GST charges,” she stated.
PHDCCI President Hemant Jain stated the expansion was largely pushed by a rise within the tertiary sector, adopted by manufacturing and agriculture sectors.
“In Q1 FY 2025-26, India’s economic system grew at 7.8% over 6.5% throughout Q1 FY 2024-25, pushed by buoyant progress within the tertiary sector, adopted by manufacturing and agriculture sectors. India’s economic system has maintained a resilient progress trajectory, with actual GDP growing by 7.8% in Q1 FY 2025-26. In nominal phrases, GDP grew by 8.8%, highlighting India’s regular tempo in direction of Viksit Bharat@2047,” he stated.
“The Agriculture, Livestock, Forestry, and Fishing sectors recorded 3.7% progress owing to a gentle monsoon. Manufacturing grew by 7.7%, accompanied by strong progress within the tertiary sector of 9.3% for Q1 FY 2026. This factors to steady and robust growth regardless of international volatilities,” he added.
Hemant Jain acknowledged that Gross Fastened Capital Formation (GFCF) elevated by 7.8% in Q1 FY2026, indicating sustained funding momentum within the nation.
India’s progress was boosted by authorities remaining consumption expenditure, rising by 7.4% throughout the identical interval.
“Moreover, structured discount in MPC charges, accompanied by softening CPI and WPI inflation, resilient rural consumption, revival of city consumption, and authorities CAPEX are supporting India’s progress trajectory,” he stated.
Going ahead, the federal government’s give attention to enhancing ease of doing enterprise, strengthening provide chains, and structural reforms is anticipated to propel India’s progress momentum, Hemant Jain stated.
DK Srivastava, Chief Coverage Advisor, EY India, stated that Q1 2025-26 actual GDP progress at 7.8% outperforms RBI’s expectations of 6.5% (August 2025 financial coverage assertion) by a tangible margin.
“Vital enhancements within the progress fee within the first quarter masking April to June 2025-26, in comparison with the common progress within the final 4 quarters, are notable in manufacturing and the three providers sectors—commerce, transport, resorts; monetary, actual property; and public administration. These 4 sectors collectively account for 72.1% of actual GVA in 2024-25,” he stated.
Srivastava stated progress in agriculture at 3.7% is strong, though marginally lower than the four-quarter common of 4.4%.
“On the demand facet, progress has been pushed primarily by authorities contribution by means of larger capital expenditure. That is mirrored in excessive progress in gross fastened capital formation at 7.8%, larger than the final four-quarter common of seven.0% by 0.8 share factors. Authorities remaining consumption expenditures, which averaged 2.9% progress over the past 4 quarters, grew by 7.5% in Q1 2025-26. The one susceptible phase is exports, which grew at 6.3%, decrease than imports at 10.9%, making internet exports a unfavourable contributor at (-)1.4 share factors after averaging 2.2% factors beforehand,” he stated.
Srivastava added that fiscal knowledge for the primary 4 months present strong progress in central authorities expenditures of 20.2%, with capital expenditure rising 32.8% and income expenditure by 17.1%. Nevertheless, tax revenues had been subdued, with direct taxes contracting by (-)4.3%.
“Going ahead, internet exports are anticipated to proceed going through challenges. The GoI should proceed fiscal assist by means of authorities capital expenditures and enhance tax income efficiency,” he stated.
