New Delhi– India’s economy has exceeded expectations with a remarkable 7.8% growth rate in the first quarter (Q1 FY26) of the current financial year, surpassing projections of 6.5% to 6.7% from the Reserve Bank of India (RBI) and other institutions.
Economist Prabir Kumar expressed his optimism, stating, “While the RBI and other institutions projected a 6.5-6.7% growth for Q1 FY26, the National Statistics Office (NSO) data shows a much higher 7.8%. This is incredibly encouraging.” Kumar noted that this growth was driven primarily by the tertiary (services) sector, though the agriculture sector also showed strong growth, ranging from 1.7% to 3.5%.
Shailesh Patwari, former president of the Gujarat Chamber of Commerce and Industry, attributed the growth to several key sectors, particularly agriculture, services, and construction. He also highlighted a shift in India’s trade strategy: “Rather than relying on one country, we are diversifying our markets, which will be highly beneficial,” Patwari added. He also expressed confidence that the Indian economy will continue to grow rapidly.
Economist Professor Bimal Anjum pointed out that the 7.8% growth rate signals India’s shift from an agrarian economy to a service-oriented one, a change that international institutions are beginning to recognize. He added that while the US tariffs on Indian goods might impact GDP by around 0.9%, expanding into new markets could easily offset these losses.
Najib Shah, former Chairman of the Central Board of Excise and Customs (CBEC), called the 7.8% GDP growth a clear reflection of India’s strong economic fundamentals. He emphasized that the economy’s diverse growth across various sectors signals resilience and sustainable development.
India’s GDP growth in Q1 FY26 was a sharp acceleration from the 6.5% growth recorded in the same period last year, and a significant recovery from the 1.5% growth seen in the first quarter of the previous fiscal year, when agricultural output was hit by erratic monsoon conditions. The agriculture sector rebounded with a robust 3.7% growth, while the manufacturing and construction sectors posted impressive growth rates of 7.7% and 7.6%, respectively. (Source: IANS)
