Strong Q1 GDP progress underlines the essential resilience and the strengthening of the momentum within the financial system, which is anchored in sturdy macro-economic fundamentals, a senior authorities official stated on Saturday.
Anuradha Thakur, Secretary, Division of Financial Affairs, advised ANI there’s all-round progress on the availability facet and strong progress throughout a number of sectors.
India’s actual GDP is estimated to have grown by 7.8 per cent within the April-June quarter of the monetary yr 2025-26, surpassing the 6.5 per cent progress charge in the identical quarter of the earlier fiscal, in accordance with official knowledge launched on Friday. India’s nominal GDP grew at an 8.8% charge through the April-June quarter.
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“On the availability facet, we now have seen all-round progress. On the manufacturing, development…engineering facet exercise and agriculture facet has proven a strong progress. The rabi harvest in addition to kharif displaying have been a lot in extra from final quarter…We now have good buffer inventory. We now have had rainfall,” Anuradha Thakur stated.
On the demand facet, the first driver has been home. She defined that web exports don’t contribute considerably to the demand facet in India.
Requested in regards to the doubtless affect of the 50% tariffs imposed by the US administration, she stated the Indian financial system’s dependence on exports is just not that top.
“There might be some near-term disturbances, however within the total yr state of affairs…we’re not altering our progress figures as but,” she stated, referring to the GDP estimates for the whole 2025-26 fiscal.
Within the Financial Survey for 2024-25, tabled in Parliament on January 31, the actual GDP progress for 2025-26 was projected to be between 6.3 and 6.8 per cent. The GDP estimates for the yr 2025-26 have not been revised since then.
Going ahead, the outlook stays constructive, and the momentum that has been demonstrated in Q1 shall maintain up, the Secretary stated.
“Agriculture is the sturdy purpose for saying that…The indications we see on the excessive frequency facet additionally give us confidence that consumption may even maintain up,” she stated.
India’s fiscal deficit for April-July has widened to 29.9% of the 2025-26 goal, in comparison with 17.2% in the identical interval final yr.
Requested how involved one needs to be about this slippage, she responded that month-to-month or quarterly fiscal deficit numbers should not essentially an indicator for the complete yr.
“As a result of, on month-to-month or quarterly foundation there might be momentary mismatches between the stream of non-debt receipt and expenditure. On the general yr quantity, we stay assured that we can persist with the fiscal deficit goal we had set for ourselves and we can preserve that,” the Secretary famous.
