India's GDP Stays Robust in January-March as Domestic Demand Offsets External Weakness
Private investment rose 10.8% and government spending increased 4.9%, helping offset weaker external demand, the data showed.
- India's economy grew 7.8% year-on-year in the January-March quarter, the government reported Friday, exceeding a Reuters poll forecast of 7.2% as domestic demand offset external headwinds from the Middle East conflict.
- Better farm output and construction activity spurred momentum, with farm output rising 3.6% and construction reaching 8.4%, despite disruptions from the Middle East conflict dampening external demand.
- Private consumer spending, which accounts for 57% of Indian GDP, grew 7.1%, while private investment rose 10.8%, according to the National Statistics Office data released Friday.
- The Reserve Bank raised its inflation projection to 5.1% on Friday while tempering annual growth forecast to 6.6%, stating policy has turned "cautious" due to deteriorating global conditions.
- Growth is expected to moderate starting in the April-June quarter, according to Mumbai-headquartered HDFC Bank's principal economist Sakshi Gupta, while a disappointing monsoon with the lowest rainfall in 11 years threatens future performance.
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This is a figure that many countries are envious of: India recorded an official growth of 7.8% in the first quarter (January to March) of this year. On paper, the Indian economy resists despite the global energy crisis caused by the blockade of the Strait of Ormuz. But to look at it more closely, many indicators show structural fragility.
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New Delhi: India’s economy grew at a higher pace of 7.7 per cent during 2025-26 as compared to 7.1 per cent in 2024-25, according to government data released on Friday. In the January-March period of the 2025-26 fiscal year, the gross domestic product (GDP) is estimated to grow 7.8 per cent, the Ministry of Statistics & Programme Implementation (MoSPI) said. “Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 323.12 lakh cro…
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