India’s economy races ahead with 7.8% growth in June quarter, PM expresses joy
India’s economy expanded by 7.8% in the quarter ending June, supported by strong activity in financial services, real estate, information technology and professional services.
The latest growth figure exceeded the 7.1% expansion expected in a Reuters poll and matched the 7.8% growth recorded in the preceding quarter.
Government data released by the Ministry of Statistics and Programme Implementation showed that manufacturing and services recorded significant improvement during the June quarter. Agriculture and allied activities, however, registered comparatively modest growth.
Barclays India chief economist Aastha Gudwani said the ongoing Iran conflict had not produced the significant economic impact that some had feared. Speaking to CNBC’s Inside India, she pointed to continued strength in consumer demand and said manufacturing, services, automobile sales and bank credit remained resilient.
According to Barclays, seven of the 20 high-frequency indicators it tracks showed slower average growth during April-June compared with January-March.
The Reserve Bank of India had earlier maintained a more cautious outlook, projecting 7% growth for the April-June quarter and 6.7% growth for the financial year ending March 2027.
Prime Minister Narendra Modi welcomed the latest figures, describing the 7.8% first-quarter growth as a major achievement.
In a post on X, Modi credited the country’s collective strength for the performance and said the latest numbers once again demonstrated India’s economic resilience.