India’s economy kicked off the financial year 2025–26 with a robust performance, clocking a GDP growth rate of 7.8% in the first quarter, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
This marks a significant acceleration from the 6.5% growth recorded in the same quarter last year, defying global economic pressures including steep tariffs from the United States. The services sector emerged as the star performer, expanding by 9.3%, while manufacturing and construction also posted strong gains of 7.7% and 7.6%, respectively.
Real Gross Value Added (GVA) rose by 7.6%, with agriculture showing a healthy 3.7% growth. However, mining and quarrying contracted by 3.1%, and utility services saw minimal growth at 0.5%.
On the expenditure side, Government Final Consumption Expenditure (GFCE) surged by 9.7%, signaling a revival in public spending. Household consumption, measured by Private Final Consumption Expenditure (PFCE), grew at a slower pace of 7.0%, while investment in the economy, reflected by Gross Fixed Capital Formation (GFCF), rose by 7.8%.
With nominal GDP reaching ₹86.05 lakh crore, up 8.8% from last year, the data paints a picture of resilience and momentum as India navigates a complex global landscape.
