India's 7.4% GDP growth shatters estimates amid global trade strains

India's economic growth is estimated to surge past most initial private and official forecasts, backed by robust domestic demand and government spending, helping New Delhi cope with punitive US tariffs.

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The near $4 trillion economy is expected to grow 7.4% in the fiscal year ending in March, the National Statistics Office said on Wednesday, above the government's initial projection of 6.3%-6.8%.

Indian Prime Minister Narendra Modi, facing steep U.S. tariffs and an uncertain global backdrop, last year accelerated domestic reforms to support growth, including an overhaul of consumer taxes on hundreds of items and implementation of long-delayed labour reforms.

"(This growth) reflects that despite rising global uncertainties India continued to perform well," Sakshi Gupta, economist at HDFC Bank, said.

The estimate of gross domestic product, which will be revised over time as data coverage improves, will be used as a base for the federal budget due to be announced on February 1.