India’s Q1 GDP Grows 7.8%, Services and Manufacturing Lead Surge

Economy maintains momentum despite global headwinds

New Delhi, Sept 4:

India’s economy grew at a robust 7.8% in the first quarter of FY2025-26, according to data released by the Press Information Bureau (PIB) and the Ministry of Statistics & Programme Implementation (MoSPI).

The services sector led the surge, expanding by 9.3%, while manufacturing and construction also grew strongly at 7.7% and 7.6%, respectively. Agriculture clocked a slower but steady 3.7% growth due to mixed monsoon patterns.

Officials noted that India’s resilience comes despite global trade uncertainties and the burden of higher U.S. tariffs. Private consumption and investment have remained steady, bolstered by government spending on infrastructure and a revival in rural demand.

MoSPI also released updated estimates for industrial output, showing Index of Industrial Production (IIP) growth of 5.9% in July, reflecting strong activity in capital goods and consumer durables.