India outperforms every forecast; GDP grows 7.8% in Q1 FY26

India's real GDP surged to a five-quarter high of 7.8% in the April-June quarter of the 2025-26 financial year, propelled by strong domestic demand and robust private consumption. This performance reinforces India's position as the world's fastest-growing major economy, well ahead of peers like China and the United States, the latter having registered a growth rate of 3.3% in the same period.

- By: Shri K. K. Bajaj

India's service sector experienced remarkable growth in August, reaching a 15-year high with a PMI of 62.9, fueled by strong demand and new orders as indicated by HSBC India Services PMI.

The manufacturing sector saw accelerated growth of 7.7% in Q1 improving significantly from 4.8% in Q4 FY25. Similarly, the construction sector expanded by 7.6%. In contrast, growth in Electricity, Gas, Water Supply, and Other Utility Services dropped sharply to 0.5%, down from 10.2% a year earlier.