Economists hail India's unprecedented 7.8 pc GDP growth rate in Q1

New Delhi, Aug 30 (IANS) Economists have hailed the unprecedented Gross Domestic Product (GDP) growth rate at 7.8 per cent in the first quarter of the current financial year (Q1 FY26), surpassing projections of 6.5 to 6.7 per cent by RBI and other institutions.

"The projection by RBI and other institutions for Q1 FY26 GDP was roughly 6.5 to 6.7, whereas the data published by National Statistics Office (NSO), the Q1 GDP for FY26 has come to 7.8 per cent, which is a very encouraging factor," economist Prabir Kumar told IANS.

This growth was basically led by tertiary sector growth, but in the primary sector, the growth in agriculture was quite good as well, at 1.7 to 3.5 per cent, Kumar added.

Shailesh Patwari, former president of the Gujarat Chamber of Commerce and Industry, said that we should take the US tariffs as an opportunity rather than a challenge.

"We are confident that India's GDP will continue to grow rapidly in the future. The GDP growth rate has increased due to the boom in agriculture, services and construction activities. Now, instead of depending on only one country, we are marketing to sell the products in other countries, which will be beneficial," Patwari added.

Economist Professor Bimal Anjum believes that the earlier GDP growth rate prediction by RBI for Q1 was based on financial platforms, and the US and UK are the biggest players using these platforms for international transactions.

However, the estimate of 7.8 GDP growth for Q1 shows that the Indian economy is becoming a service sector-oriented economy from an agrarian economy, which is being recognised by International institutions as well.

Anjum said that the US tariff on Indian goods can affect 0.9 per cent of GDP; however, finding new markets would make up the losses.

Meanwhile, former Chairman of the Central Board of Excise and Customs (CBEC) Najib Shah told IANS that India's unprecedented 7.8 per cent GDP growth in the first quarter is a reflection of the strong fundamentals of the Indian economy.

India’s GDP growth accelerated to a robust 7.8 per cent in the April-June quarter compared to 6.5 per cent during the same quarter a year ago.

According to the data, compared to the 1.5 per cent growth rate recorded in the first quarter of the previous fiscal year, when farm output was impacted by an unpredictable monsoon, the agriculture sector recovered with a robust 3.7 per cent growth rate in the first quarter of 2025-2026.

The manufacturing sector posted a growth of 7.7 per cent, and the construction sector grew by 7.6 per cent.

--IANS

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