Paper: GS – III, Subject: Indian Economy, Topic: Growth and Development, Issue: India’s GDP Growth Surge.
Context:
India’s economy showed remarkable resilience in the first quarter (April-June) of the 2025-26 financial year, with GDP growth surging to a five-quarter high of 7.8%.
- This robust performance exceeds the Reserve Bank of India’s (RBI) earlier projection of 6.5%, driven by strong activities across manufacturing, construction, and services sectors.
- The growth momentum casts an optimistic outlook despite challenges such as the recent 50% U.S. tariffs on Indian exports and currency depreciation.
Concern and Mitigation:
India’s Q1 2025-26 GDP growth of 7.8% reflects strong recovery led by manufacturing, construction, and services. Despite U.S. tariffs and rupee depreciation, resilient domestic demand and government measures are expected to sustain growth, with disruptions likely easing before the festive season.
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