Amid global trade tensions and the ongoing tariff dispute with the United States, India has delivered strong economic news with its GDP expanding by 7.8% in the April-June quarter of 2025-26. The growth beat the Reserve Bank of India’s projection of 6.5% and marked the country’s fastest rise in five quarters.

The figure is 1.3 percentage points higher than the same period last year, when the economy grew by 6.5%. The last time India registered stronger growth was in January-March 2024, when GDP surged 8.4%. With China reporting growth of 5.2% in the same quarter, India has retained its status as the world’s fastest-growing major economy.

According to the National Statistical Office (NSO), the surge was powered by robust performances in services and agriculture. The services sector expanded 9.3% compared to 6.8% a year earlier, while agriculture grew 3.7% against 1.5% last year, reflecting gains from a strong monsoon and rural demand revival. Construction, however, moderated to 7.6% from 10.1% a year ago, suggesting a slight cooling after several quarters of rapid expansion.

Earlier this month, the RBI had forecast growth for the full fiscal year at 6.5%, with Q1 also pegged at 6.5%. The stronger-than-expected performance has raised optimism about an upward revision.

RBI Governor Sanjay Malhotra attributed the momentum to favorable monsoon rains, moderating inflation, rising capacity utilization, and supportive financial conditions. “The supportive monetary, regulatory and fiscal policies, including robust government capital expenditure, should also boost demand,” he said, adding that services are expected to remain buoyant in the coming quarters.

The numbers come as a morale booster for policymakers seeking to balance domestic growth with global economic uncertainties, reinforcing India’s resilience amid external shocks.

Amid global trade tensions and the ongoing tariff dispute with the United States, India has delivered strong economic news with its GDP expanding by 7.8% in the April-June quarter of 2025-26. The growth beat the Reserve Bank of India’s projection of 6.5% and marked the country’s fastest rise in five quarters.

The figure is 1.3 percentage points higher than the same period last year, when the economy grew by 6.5%. The last time India registered stronger growth was in January-March 2024, when GDP surged 8.4%. With China reporting growth of 5.2% in the same quarter, India has retained its status as the world’s fastest-growing major economy.

According to the National Statistical Office (NSO), the surge was powered by robust performances in services and agriculture. The services sector expanded 9.3% compared to 6.8% a year earlier, while agriculture grew 3.7% against 1.5% last year, reflecting gains from a strong monsoon and rural demand revival. Construction, however, moderated to 7.6% from 10.1% a year ago, suggesting a slight cooling after several quarters of rapid expansion.

Earlier this month, the RBI had forecast growth for the full fiscal year at 6.5%, with Q1 also pegged at 6.5%. The stronger-than-expected performance has raised optimism about an upward revision.

RBI Governor Sanjay Malhotra attributed the momentum to favorable monsoon rains, moderating inflation, rising capacity utilization, and supportive financial conditions. “The supportive monetary, regulatory and fiscal policies, including robust government capital expenditure, should also boost demand,” he said, adding that services are expected to remain buoyant in the coming quarters.

The numbers come as a morale booster for policymakers seeking to balance domestic growth with global economic uncertainties, reinforcing India’s resilience amid external shocks.