India's economy grew 7.8% in Q1 before US tariffs took effect
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New Delhi: India’s economy grew by 7.8 per cent in the April–June quarter, marking the highest growth in the last five quarters, according to government data released on Friday. The strong performance was driven mainly by robust growth in the agriculture sector.
This growth comes ahead of potential global disruptions, including the impact of newly imposed US tariffs.
India remains the fastest-growing major economy, as China's GDP growth in the April-June quarter was 5.2 per cent. The previous highest GDP growth was 8.4 per cent in January-March of 2024, as per the data.
The agriculture sector recorded a 3.7 per cent growth, up from 1.5 per cent in the April-June period of 2024-25, as per the National Statistical Office (NSO) data released on Friday. However, the manufacturing sector growth marginally increased to 7.7 per cent in the first quarter of FY26 compared to 7.6 per cent in the year-ago period.
Earlier this month, the Reserve Bank of India had projected real GDP growth for 2025-26 at 6.5 per cent, with Q1 at 6.5 per cent, Q2 at 6.7 per cent, Q3 at 6.6 per cent, and Q4 at 6.3 per cent.
(With PTI inputs)