In Q1 FY 2025–26, India’s economy grew at 7.8% over the growth rate of 6.5% during Q1 FY 2024-25, driven by buoyant growth in tertiary sector followed by manufacturing and agriculture sectors
India’s economy has maintained a resilient growth trajectory, with real GDP increasing by 7.8% in Q1 FY 2025–26. In nominal terms, GDP grew by 8.8% highlighting India’s steady pace towards Viksit Bharat@2047, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.
This growth was largely driven by an increase in the tertiary sector followed by manufacturing and agriculture sectors. The Agriculture, Livestock, Forestry & Fishing has recorded a growth of 3.7% owing to the steady monsoon. On the other hand, the manufacturing sector grew by 7.7%, accompanied with robust growth in the tertiary sector by 9.3%, for Q1 FY 2026. This points to the stable and strong development of India despite continuous global volatilities, he added.
The Gross Fixed Capital Formation (GFCF) rose by 7.8% in Q1FY2026, reflecting the investment momentum in the country, he said.
India’s growth was boosted by growth in government final consumption expenditure growing by 7.4% during the same period, he said.
Additionally, structured reduction in MPC rates accompanied with a softening trend of CPI and WPI inflation; resilient rural consumption with revival of urban consumption and government CAPEX are supporting India’s growth trajectory, said Mr Jain.
Going forward, the government’s continuous focus on enhancing ease of doing business, strengthening supply chains and structural reforms are expected to propel India’s growth momentum in the coming times, he said.