Govt reforms, fiscal prudence play key role in GDP

The five-quarter high Gross Domestic Product (GDP) growth of 7.8 per cent in April-June is an outcome of a slew of reforms undertaken by the Modi-led government over the last decade, coupled with its fiscal prudence, India Inc said Saturday.

- PRESS TRUST OF INDIA

Industry leaders expressed that India's economy will be able to weather global headwinds emanating from US tariffs, on the back of strong domestic demand and is on a sustained growth trajectory.

Indian economy grew by 7.8 per cent in April-June -- the highest in the past five quarters. India remains the fastest-growing major economy, as China's GDP growth in the April-June period was 5.2 per cent.

“India's growth story reflects the underlying strengths of the Indian economy, strong fiscal boost through increased government expenditure, great performances by services and manufacturing, and of course, continued reforms. At 7.8 per cent GDP growth, not only would India be the fastest growing, but this would also be standout growth in the face of many global headwinds," CII President Rajiv Memani said.

“India’s real GDP growth of 7.8 per cent in the first quarter of FY2025-26 is a remarkable achievement ... This outcome reinforces India’s position as the fastest growing large economy in the world, at a time when global growth is facing significant headwinds," CII Director General Chandrajit Banerjee said.