India Q1 FY26 GDP Growth Hits 7.8% on Strong Domestic Demand
New Delhi, August 31, 2025 — India’s economy grew by an impressive 7.8% in the first quarter of FY26, bolstered by robust domestic demand, increasing private consumption, and rising capital formation. The agricultural economy grew at a steady 3.7% in Q1, as well, indicating the resilience and strength of the rural economy.
Official data released by the government on Saturday indicated that the growth figures for Q1 reaffirm India’s place as the fastest growing major economy in the world. The strong investment activity and household consumption have been consistent factors enabling the economy to sustain high peaks of growth through times of uncertainty in the global economic environment.
Speaking to DD India, Anuradha Thakur, Secretary, Department of Economic Affairs, said, “The numbers are the reflection of the robust fundamentals of the economy.” She continued, “The Q1 numbers show the resilience of the economy and reflect strong macroeconomic fundamentals,” and noted that continued government reforms and policy stability have also increased private sector investment levels.
Economists have previously indicated that the growth in GDP is due to increased levels of capital expenditure by government, a revival in urban consumption levels, and improving manufacturing output. The services sector also continued with a strong trajectory enabled by technology-led growth, as well as demand for Indian IT and business services which continue grow globally.
Support from the agricultural sectors’ 3.7% growth, aided by favourable monsoon patterns and increased farm activity, has also contributed to expectations of a rural boost in consumption over forthcoming quarters.
With inflation showing signs of moderation and FDI flows improving, policymakers are optimistic they will be able to maintain momentum into the next quarters. The Reserve Bank of India will continue to balance risks from the global and domestic economy while supporting growth, mostly through calibrated monetary policy.
India Q1 FY26 GDP Growth- India stuns the World with such hight Growth
India GDP growth 2025 outlook remains strong, with most forecasts clustering around 7-7.5% for the entire fiscal year, assuming global headwinds remain manageable and even to last year(2024).