India’s GDP growth exceeds RBI forecast, expands 7.8% in June quarter

GDP

India’s economy recorded robust year-on-year GDP growth of 7.8% in the April-June quarter, outperforming the Reserve Bank of India’s (RBI) 7% forecast. Growth remained resilient despite external headwinds, including the West Asia conflict, elevated energy prices, and supply-chain disruptions.

The expansion was supported by strong performance in both manufacturing and services, which recorded near double-digit growth during the quarter. Manufacturing grew 9.2%, accelerating from 8.3% in the corresponding quarter of the previous year. The services sector also expanded strongly by 10%, compared with 8% a year earlier, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).

The stronger-than-expected economic performance indicates continued resilience in domestic economic activity and provides a supportive backdrop for investment and construction-related sectors. Prime Minister Narendra Modi described the 7.8% growth rate as a significant achievement, while Finance Minister Nirmala Sitharaman attributed the performance to ongoing government reforms and proactive economic management.

Source: RBI