Q1 GDP: Domestic demand leads the way

THE Q1 REAL GDP growth at 7.8% exceeds the RBI's expectation of 6.5% (August 2025 monetary policy statement) by 1.3 percentage points.

- DK SRIVASTAVA

Significant improvements in the growth rate in the April-June period compared to the average growth in the previous four quarters are notable in manufacturing and the three services sectors such as trade, transport, and hotels, as well as financial, real estate and public administration. All these four sectors accounted for 72.1% of real GVA in FY25. Growth in agriculture at 3.7% remains robust although marginally less than the corresponding average over the last four quarters of 4.4%.