{"id":184615,"date":"2025-08-29T13:02:19","date_gmt":"2025-08-29T13:02:19","guid":{"rendered":"https:\/\/www.europesays.com\/us\/184615\/"},"modified":"2025-08-29T13:02:19","modified_gmt":"2025-08-29T13:02:19","slug":"indias-q1-gdp-springs-big-surprise-with-five-quarter-high-growth-of-7-8-before-us-tariff-blow","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/184615\/","title":{"rendered":"India\u2019s Q1 GDP springs big surprise with five-quarter high growth of 7.8% before US tariff blow"},"content":{"rendered":"

Beating estimates and marking a five-quarter high, India\u2019s Gross Domestic Product (GDP) grew 7.8% in the April-June quarter of FY26, data released by the National Statistics Office (NSO) showed on Friday.<\/p>\n

According to an ET poll of 14 economists, the Q1 GDP<\/a> growth was projected between 6.3% and 7%, with a median estimate of 6.7%, broadly in line with the Reserve Bank of India\u2019s (RBI) forecast of 6.5%. GDP had slipped to a 15-month low of 6.7% in the same quarter last year.<\/p>\n

“Real GDP or GDP at Constant Prices in Q1 of FY 2025-26 is estimated at Rs 47.89 lakh crore, against Rs 44.42 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.8%. Nominal GDP or GDP at Current Prices in Q1 of FY 2025-26 is estimated at Rs 86.05 lakh crore, against Rs 79.08 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8%,” the official press release stated.
Sectoral classification<\/strong>
The primary sectors comprising agriculture and mining industries witnessed 2.8% growth on an annual basis as against 2.2% in the corresponding period of FY25.\"ETLive EventsAgriculture grew 3.7% in the first quarter of FY26 on an annual basis. The sector had grown at 1.5% in Q1 FY25. The mining sector contracted 3.1% in Q1 FY26, against a growth of 6.6% in FY25.
\"Sectoral
Further, the secondary sector consisting of manufacturing and electricity industries recorded a growth of 7% on an annual basis. The growth rate for India’s secondary sector had stood at 8.6% in the same period of the last fiscal.Manufacturing witnessed a growth of 7.7% for the first quarter of the current fiscal year on an annual basis. The manufacturing industry had recorded a growth of 7.6% in FY25.<\/p>\n

The tertiary sector growth stood at 9.3% annually. Growth for trade, hotels, transport, communications and services related to broadcasting grew 8.6% on an annual basis in Q1 FY26, up from 5.4% in FY25.<\/p>\n

Meanwhile, financial, real estate and professional services witnessed a growth of 9.5% in June quarter as against 6.6% in Q1 of the previous fiscal.<\/p>\n

Public administration and defence recorded a growth of 9.8% in Q1FY26 on an annual basis against 9% in FY25.<\/p>\n

Public spending boosts growth
<\/strong>The Centre\u2019s capital expenditure rose by 52% year-on-year in the first quarter, emerging as a key growth driver. Construction and agriculture sectors performed strongly, while aviation cargo traffic, GST collection, and steel production also showed an uptick, an ET report said.<\/p>\n

\u201cGDP growth is expected to be supported by robust public spending, improving rural demand and a resilient services sector,\u201d Rajani Sinha, chief economist, CareEdge Ratings, had said.<\/p>\n

Sakshi Gupta, principal economist at HDFC Bank<\/a>, had added, \u201cConstruction and agriculture are two sectors where we have accounted for higher growth. Exports of goods and services rose by 5.9% in the June quarter, aided by frontloaded demand from economies like the US.\u201d<\/p>\n

All eyes will now be on how GDP growth pans out from here with tariffs (original 25% plus additional 25%) in play. Economists expect that the likely GST rationalisation, RBI MPC-led interest rate cuts and a favourable monsoon might support consumption in the coming quarters.<\/p>\n

But global trade risks remain. It may be noted here that Trump’s initial 25% tariff on Indian imports later went up to as much as 50% after he imposed an additional levy linked to Russian oil trade. Barclays economist Aastha Gudwani estimated this could shave off 30 basis points from India\u2019s full-year growth if the higher tariff rates persist.<\/p>\n

\u201cOverall, given the relatively closed nature of the Indian economy wherein domestic demand is the mainstay of growth, we do not see this 25% tariff threat impacting GDP growth meaningfully,\u201d Gudwani added.<\/p>\n

The World Bank and IMF have pegged India\u2019s growth at 6.3% and 6.4% respectively in FY26, keeping the country among the world\u2019s fastest-growing economies.<\/p>\n

Add \"ET as a Reliable and Trusted News Source<\/p>\n","protected":false},"excerpt":{"rendered":"Beating estimates and marking a five-quarter high, India\u2019s Gross Domestic Product (GDP) grew 7.8% in the April-June quarter…\n","protected":false},"author":3,"featured_media":184616,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,103737,22692,103732,103736,103729,103733,103734,103730,103735,103731,103738,67,132,68],"class_list":{"0":"post-184615","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-gdp-news","11":"tag-hdfc-bank","12":"tag-india-economic-growth-2023","13":"tag-india-gdp","14":"tag-india-gdp-growth-fy26","15":"tag-india-gdp-sector-analysis","16":"tag-india-q1-gdp-growth","17":"tag-national-statistics-office-gdp-report","18":"tag-q1-gdp","19":"tag-reserve-bank-of-india-gdp-forecast","20":"tag-tariff-gdp-news","21":"tag-united-states","22":"tag-unitedstates","23":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115112191399730516","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/184615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=184615"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/184615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/184616"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=184615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=184615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=184615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}