India’s GDP Growth Overview 2025::India’s GDP growth accelerated to 7.8% in the first quarter of FY 2025-26, surpassing expectations despite global challenges. This robust growth underscores India’s position as the fastest-growing major economy worldwide.
India’s real GDP grew by 7.8% in the first quarter of FY 2025-26 (April to June 2025), compared to 6.5% in the same period last year. This is the fastest growth rate in five quarters and reflects strong economic momentum led by services and agriculture sectors. [PIB]
Nominal GDP (at current prices) for Q1 FY26 is estimated at ₹86.05 lakh crore, up from ₹79.08 lakh crore in Q1 FY25, registering an 8.8% increase. The construction sector growth slowed slightly to 7.6% from 10.1% last year. [Economic Times]
The Reserve Bank of India had projected real GDP growth for FY 2025-26 at around 6.5%-6.7% overall, with Q1 expected at 6.5%, so the actual Q1 growth of 7.8% exceeded expectations. [NDTV]
Despite global headwinds such as US tariffs, India’s economy remains the fastest-growing major economy in the world, with expected ascent to the world’s third or fourth largest economy by 2030. [Economic Times]
Key growth drivers include strong performances in the services sector (9.3%), agriculture (3.7%), and increased capacity utilization supported by accommodative monetary and fiscal policies. [NDTV]
IMF and other agencies forecast India’s GDP growth at around 6.4%-6.7% for the calendar years 2025 and 2026, reaffirming India’s role as a major driver of global growth. [IMF]
Summary: India’s GDP growth remains robust, supported by strong domestic demand, government capital expenditure, and a diversified economic base. This makes India the fastest-growing major global economy in 2025.
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