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
Notwithstanding the current turbulence being felt by the exporting community, India is maintaining its resilient growth trajectory.
The real GDP increasing by 7.8% in Q1 FY 2025–26, and nominal by 8.8 percent, indicate India’s steady pace in moving towards Viksit Bharat@2047, said Hemant Jain, President, PHDCCI.
“This growth was largely driven by an increase in the tertiary sector followed by manufacturing and agriculture sectors,” he said in a press statement on Friday.
Agriculture, Livestock, Forestry & Fishing have 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, Jain said.
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.
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, Jain said.
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 added.
