India’s GDP grows at 7.8% in Q1 compared to 6.5% last year

Mangalore Today News Network

New Delhi, Aug 29, 2025: In some economic good news for India amid the US tariff conundrum, the GDP has grown by 7.8% in the first quarter of this financial year against an estimate of 6.7%. The figure is also 1.3% percentage points higher than in the same timeframe last year.

India’s Gross Domestic Product had grown 6.5% in the April-June quarter in the last fiscal and the growth in the same three-month period in 2025-2026 represents the fastest rise in five quarters. The previous highest GDP growth was 8.4% in January-March of 2024.

China’s growth in April-June this year was 5.2% and India’s GDP figure means that it remains the fastest-growing major economy. 

The growth was driven by the services sector and the agricultural sector, which saw a rise of 9.3% against 6.8% and 3.7% against 1.5%, respectively, in April-June last year as per National Statistical Office (NSO) data. The construction sector’s growth slowed at 7.6% this year against 10.1% last year. 

Earlier this month, the Reserve Bank of India had projected real GDP growth for 2025-26 at 6.5% with Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6%, and Q4 at 6.3%.