India Q1 GDP grows 7.8%, beating forecasts as services lead

India's economy expanded by 7.8 percent in the April to June quarter of the 2025-26 financial year, the Ministry of Statistics and Programme Implementation said on Friday, a stronger-than-expected showing that outpaced most private and central bank forecasts and underscored broad-based momentum across services, industry and agriculture.

The government said real gross domestic product rose 7.8 percent year on year in Q1, up from 6.5 percent in the same quarter a year earlier, with real gross value added expanding 7.6 percent. At constant prices, GDP in the quarter stood at about Rs 47.89 lakh crore, compared with Rs 44.42 lakh crore a year ago. Nominal GDP grew 8.8 percent.

The services sector was the principal driver, accelerating to 9.3 percent growth after 6.8 percent a year earlier, led by public administration, defence and other services as well as financial and professional services. Manufacturing rose 7.7 percent and construction 7.6 percent, signalling continued industrial recovery and infrastructure activity. Agriculture and allied activities recorded 3.7 percent growth. Mining and quarrying contracted by 3.1 percent and utilities slowed to 0.5 percent, the ministry said.