India’s economy expanded by 7.8% in the January-March quarter, performing better than economists had expected and reinforcing the country’s position as one of the world’s fastest-growing major economies. Official data released on Friday showed growth was supported by strong activity in construction and agriculture.
The latest figure was higher than the 7.2% growth forecast in a Reuters poll of economists. While growth was slightly lower than the revised 8% recorded in the previous quarter, it still highlighted the resilience of the Indian economy amid global uncertainties.
Construction and farming drive growth
Construction emerged as one of the strongest-performing sectors during the quarter, while agricultural output also improved compared with previous months. Manufacturing activity remained healthy, although it grew at a slower pace than in the preceding quarter.
Government data also showed that Gross Value Added (GVA), a key measure of economic activity, rose 7.9% during the quarter. This suggests that underlying economic momentum remained strong despite challenges in the global economy.
The India GDP growth figures come at a time when many economies are facing pressure from geopolitical tensions, weaker global demand and rising energy costs.
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Full-year growth exceeds estimates
For the financial year ended March 2026, India’s economy grew by 7.7%. This was slightly higher than the government’s earlier estimate of 7.6%, reflecting stronger-than-expected performance across several sectors.
Economists say domestic demand, infrastructure spending and rural activity helped support growth throughout the year. However, some experts have pointed to signs of pressure on private consumption and external demand.
Challenges remain ahead
Despite the strong performance, risks remain for the coming year. Higher crude oil prices, global uncertainty and weather-related concerns could affect economic momentum. The Reserve Bank of India has already projected slower growth for the current financial year.
Still, the latest data has provided a positive signal for policymakers and investors. The India GDP growth numbers suggest that the economy continues to show resilience even as global conditions remain challenging.
