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India’s GDP grows to 5-quarter high of 7.8% in Q1 of FY 2025-26
Aug-30-2025

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its latest data has showed that India’s economy grew by a stronger-than-expected 7.8 per cent in April-June quarter (Q1) of the fiscal year 2025-26, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles. The gross domestic product (GDP) growth in Q1FY26 was mainly driven by good showing by the farm sector, and also helped by services like trade, hotel, financial and real estate. The previous highest pace of growth in the country’s GDP was recorded at 8.4 per cent during January-March 2024. India remains the fastest-growing major economy, as China’s GDP growth in the April-June period was 5.2 per cent.

As per the data, real GDP or GDP at Constant Prices in Q1 of FY 2025-26 is estimated at Rs 47.89 lakh crore, against Rs 44.42 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.8%. Nominal GDP or GDP at Current Prices in Q1 of FY 2025-26 is estimated at Rs 86.05 lakh crore, against Rs 79.08 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8%. Real GVA in Q1 of FY 2025-26 is estimated at Rs 44.64 lakh crore, against Rs 41.47 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.6%. Nominal GVA in Q1 of FY 2025-26 is estimated at Rs 78.25 lakh crore, against Rs 71.95 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8%.

Among the sectors, the agriculture sector recorded a 3.7 per cent growth, up from 1.5 per cent in the April-June period of 2024-25. Manufacturing sector growth increased marginally at 7.7 per cent in the first quarter of FY26 compared to 7.6 per cent recorded in the year-ago period. Mining & quarrying (-3.1 per cent) and electricity, gas, water supply and other utility services sector (0.5 per cent) has seen moderated real growth rate during Q1 of FY 2025-26. Tertiary sector has recorded a substantial growth rate of 9.3 per cent in Q1 of FY 2025-26, over the growth rate of 6.8 per cent in Q1 of 2024-25. Tertiary sector includes services like trade, hotel, transport, financial institutions, real estate, professional services, public administration and defence.

NSO also stated that the Government Final Consumption Expenditure (GFCE) has bounced back, registering a 9.7 per cent growth rate in nominal terms during Q1 of FY 2025-26, over the growth rate of 4.0 per cent in Q1 of FY 2024-25. Real Private Final Consumption Expenditure (PFCE) has reported a 7.0 per cent growth rate during the reporting quarter as compared to 8.3 per cent growth rate in the corresponding period of previous financial year. Gross Fixed Capital Formation (GFCF) has recorded a 7.8 per cent growth rate at Constant Prices, as against the growth rate of 6.7 per cent in Q1 of FY25. The discrepancies (differences in values calculated using different methods of GDP estimation) jumped to Rs 1.11 lakh crore during the first quarter of this fiscal from Rs 33,384 crore in the same period year ago.

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