GDP Growth: India’s economy grew 7.8 percent in the April-June quarter of FY27, well above economists’ expectations, with strong domestic activity shielding the economy from external and geopolitical headwinds triggered by the West Asia crisis. The figure came despite US tariffs and regional instability threatening to dampen momentum.
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A Growth Surprise in a Global Turmoil
The pace kept India the fastest-growing major economy in the world and above the Reserve Bank of India’s quarterly estimate of 7 percent, demonstrating the strength of domestic demand amid heightened global uncertainties. Real GDP at constant prices was Rs 81.36 lakh crore as against Rs 75.46 lakh crore in the same period a year ago.
Manufacturing, Services Take the Lead
Growth was supported by strong manufacturing and services activity, with manufacturing up 9.2 percent and services up 10 percent, pointing to broad-based momentum rather than a narrow, sector-driven bump. Also, India Ratings and Research’s Devendra Pant said resilient capital expenditure, with combined capex by the Center, states and public enterprises increasing 16.9 percent in Q1 FY27 against 14.1 percent a year ago.
Modi’s Perspective on the “Herculean Feat”
Chief Economic Adviser V Anantha Nageswaran said the Indian economy has displayed sustained resilience despite global concerns and credited the government for ensuring that there were no disruptions on the input side. Prime Minister Modi termed the growth number as a “herculean feat” and said the collective strength of the people of the country ensured that India was able to deliver such growth despite the shocks of oil prices and supply chain issues.
Warning Ahead
GDP Growth: Economists still expect some cooling in the coming quarters, citing geopolitical tensions, trade policy uncertainty and weather-related risks from El Nino conditions and high food inflation. Still, the better-than-expected first quarter has prompted a number of agencies to lift their full-year growth estimates, helping to bolster the story of an economy weathering external shocks better than expected.
