Q1 GDP: India’s economy grows 7.8% in April-June quarter, services sector drives expansion

The Indian economy grew by 7.8% in the April-June quarter of the current financial year 2025-26, aided by a robust performance of the services sector, according to government data released on Friday.

The growth in real Gross Domestic Product (GDP) in Q1 of FY26 is higher than the 6.5% expansion recorded in the same period a year ago, the National Statistics Office (NSO) said in a statement.

In absolute terms, real GDP at constant (2011-12) prices is estimated at ₹47.89 lakh crore in Q1 of FY26, compared to ₹44.42 lakh crore in Q1 of FY25. At current prices, nominal GDP grew by 8.8% to ₹86.05 lakh crore from ₹79.08 lakh crore in the year-ago period.

The agriculture sector recorded a 3.7% growth, up from 1.5% in the April-June period of 2024-25.

Manufacturing grew 7.7%, while construction expanded 7.6%.

However, mining and quarrying contracted by 3.1%, and electricity, gas, water supply and other utility services registered a tepid 0.5% growth.

India remains the fastest-growing major economy, as China's GDP growth in the April-June period was 5.2%.

The previous highest GDP growth was 8.4 % in January-March of 2024, as per the data.

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