India’s GDP grows at robust 7.8% in Q1 FY26; 5-quarter high number beats estimates by wide margin – key highlights
India’s GDP grew at a robust 7.8% for the first quarter of the current financial year 2025-26, beating estimates by over a full per cent. RBI had estimated that the GDP grew at 6.5% in Q1 FY26, and most economists had projected a 6.7% number.India is the world’s fastest growing major economy and the first quarter numbers are a booster shot at a time when India now faces 50% US tariffs. The impact of the Donald Trump administration’s tariffs is likely to be felt in the coming quarters, if an India-US trade deal is not finalised.
India Q1 GDP Growth : Key Highlights
- Q1 of FY 2025-26 saw a real GDP expansion of 7.8%, surpassing the 6.5% growth recorded in Q1 of FY 2024-25.
- Nominal GDP shows an increase of 8.8% in Q1 of FY 2025-26.
- Agriculture and allied sectors recorded Real GVA growth of 3.7%, higher than the 1.5% registered in Q1 of the previous financial year.
- Secondary sectors showed robust performance, with manufacturing achieving 7.7% and construction reaching 7.6% growth at constant Prices this quarter.
- Q1 of FY 2025-26 indicates subdued Real growth in Mining & Quarrying (-3.1%) and Electricity, Gas, Water Supply and Other Utility Services (0.5%).
- The tertiary sector has shown significant improvement with a 9.3% growth rate at Constant Prices in Q1 of FY 2025-26, compared to 6.8% in Q1 of FY 2024-25.
- GFCE has shown remarkable improvement with a 9.7% growth rate in Nominal terms during Q1 of FY 2025-26, in contrast to 4.0% in Q1 of FY 2024-25.
- Real PFCE growth rate stood at 7.0% in Q1 of FY 2025-26, showing a decline from 8.3% growth observed in the same period of the previous financial year.
- GFCF demonstrated improved performance with 7.8% growth rate at Constant Prices in Q1 of FY 2025-26, up from 6.7% in Q1 of FY 2024-25.
Real GDP at constant prices reached ₹47.89 lakh crore in Q1 of FY 2025-26, compared to ₹44.42 lakh crore in Q1 of FY 2024-25, achieving 7.8% growth. The Nominal GDP at current prices reached ₹86.05 lakh crore in Q1 of FY 2025-26, compared to ₹79.08 lakh crore in Q1 of FY 2024-25, displaying 8.8% growth.Real GVA calculations show ₹44.64 lakh crore in Q1 of FY 2025-26, compared to ₹41.47 lakh crore in Q1 of FY 2024-25, indicating 7.6% growth. Nominal GVA reached ₹78.25 lakh crore in Q1 of FY 2025-26, compared to ₹71.95 lakh crore in Q1 of FY 2024-25, showing 8.8% growth.
