Indian Economy Soars : GDP Growth Hits 7.8% in Q1 2025-26

India’s economy is off to a strong start, with the latest data from the National Statistics Office (NSO) showing a robust 7.8% growth in real Gross Domestic Product (GDP) for the first quarter (April-June) of the 2025-26 financial year. This marks a significant acceleration from the 6.5% growth recorded in the same quarter last year.

The country's nominal GDP also saw healthy growth, rising by 8.8% in the quarter.

Sectoral Performance

• Agriculture and Allied Sectors saw a positive turnaround, with real Gross Value Added (GVA) growth jumping to 3.7%, a notable improvement from the 1.5% growth in Q1 of the last fiscal year.
   
• The Secondary Sectors were a major growth engine, with both Manufacturing and Construction registering strong real growth rates of 7.7% and 7.6%, respectively.
   
• The Tertiary Sector (services) led the charge with a substantial growth rate of 9.3%, outpacing the 6.8% growth from the previous year's Q1.
   
• However, not all sectors performed equally well. Mining & Quarrying saw a decline of -3.1%, while Electricity, Gas, Water Supply and Other Utility Services saw a moderate real growth of just 0.5%.

Expenditure Components Reflect Strong Demand

The expenditure side of the economy also showed positive trends, highlighting both government spending and private investment.

• Government Final Consumption Expenditure (GFCE) bounced back strongly, with a 9.7% growth in nominal terms, a significant increase from the 4.0% growth in the same period last year.
   
• Gross Fixed Capital Formation (GFCF), a key indicator of investment, grew by 7.8% at constant prices, showing continued confidence in the economy.
   
• Private Final Consumption Expenditure (PFCE), a measure of household spending, grew at 7.0%. While still strong, this was a slight moderation from the 8.3% growth seen in the corresponding period of the previous financial year.

In terms of total value, real GDP for Q1 FY 2025-26 is estimated at Rs 47.89 lakh crore, up from Rs 44.42 lakh crore a year ago. Similarly, real GVA grew to Rs 44.64 lakh crore from Rs 41.47 lakh crore. 

Also Read: Reliance Industries AGM 2025: Mukesh Ambani Sets Jio IPO Timeline