Robust Q1 GDP growth of 7.8% signals strong start to FY26

Retains tag as world's fastest-growing major economy

- MPOST BUREAU

India's economy expanded at a faster-than-expected 7.8 per cent in April-June 2025, its quickest pace in five quarters, driven by robust farm output and a strong showing in services such as trade, hotels, finance and real estate, even as looming US tariffs announced by President Donald Trump threaten to cloud the export outlook, particularly in sectors like textiles, according to official data released by the National Statistics Office on Friday.

The previous highest pace of growth in the country's GDP was recorded at 8.4 per cent during January-March 2024, as per the data. India remains the fastest-growing major economy, as China's GDP growth in the April-June period was 5.2 per cent.

The agriculture sector recorded a 3.7 per cent growth, up from 1.5 per cent in the April-June period of 2024-25, as per the data released by the National Statistics Office (NSO).

However, manufacturing sector growth increased marginally at 7.7 per cent in the first quarter of FY26 compared to 7.6 per cent recorded in the year-ago period.