India posts 7.8% GDP growth in June quarter of FY26 against 6.5 per cent a year ago

India posts 7.8% GDP growth in June quarter of FY26 against 6.5 per cent a year ago

New Delhi:

India's growth rate in the first quarter of the financial year 2025-26 was 7.8 per cent as compared to 6.5 per cent in the same quarter a year ago. Real GDP, or GDP at constant prices, in Q1 of FY 2025-26 is estimated at Rs 47.89 lakh crore, compared to Rs 44.42 lakh crore in Q1 of FY 2024-25, representing a growth rate of 7.8 per cent.

Nominal GDP or GDP at current prices in Q1 of FY 2025-26 is estimated at Rs 86.05 lakh crore, against Rs 79.08 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8 per cent.

According to data shared by the Ministry of Statistics & Programme Implementation, the real GVA (Gross Value Added) in the April-June quarter of FY 2025-26 is estimated at Rs 44.64 lakh crore, compared to Rs 41.47 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.6 per cent. 

Nominal GVA in Q1 of FY 2025-26 is estimated at Rs 78.25 lakh crore, against Rs 71.95 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8 per cent.

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GDP Growth Beats Estimates 

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The number has surpassed GDP expectations. A SBI Research Report had pegged the first quarter GDP estimate at around 6.8-7 per cent. 

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The latest Economic Survey predicted that India's economy will grow at 6.3-6.8 per cent in 2025-26, driven by strong macroeconomic fundamentals. However, strategic and prudent policy management will be required to navigate global headwinds.

Earlier, the Reserve Bank of India had projected real GDP growth for 2025-26 at 6.5 per cent, with Q1 at 6.5 per cent, Q2 at 6.7 per cent, Q3 at 6.6 per cent, and Q4 at 6.3 per cent.

GDP Data Key Highlights

  • Agriculture and Allied Sector has observed the Real GVA growth rate of 3.7 per cent, as compared to the growth rate of 1.5 per cent registered in Q1 of last financial year.
  • Secondary Sectors, prominently Manufacturing (7.7 per cent) and Construction (7.6 per cent) Sector has registered above 7.5 per cent growth rate at Constant Prices in this quarter.
  • Mining & Quarrying (-3.1 per cent) and Electricity, Gas, Water Supply and Other Utility Services Sector (0.5 per cent) has seen moderated Real growth rate during Q1 of FY 2025-26.
  • Tertiary Sector (9.3 per cent) has recorded substantial growth rate at Constant Prices in Q1 of FY 2025-26, over the growth rate of 6.8 per cent in Q1 of FY 2024-25.
  • Government Final Consumption Expenditure (GFCE) has bounced back, registering 9.7 per cent growth rate in Nominal terms during Q1 of FY 2025-26, over the growth rate of 4.0 per cent in Q1 of FY 2024-25
  • Real Private Final Consumption Expenditure (PFCE) has reported 7.0 per cent growth rate during Q1 of FY 2025-26 as compared to the 8.3 per cent growth rate in the corresponding period of previous financial year.
  • Gross Fixed Capital Formation (GFCF) has recorded 7.8 per cent growth rate at Constant Prices, over the growth rate of 6.7 per cent in Q1 of FY 2024-25
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