New Delhi, August 30, 2025: Despite concerns over the recent 50% tariffs imposed by the United States on Indian exports, India’s economy has demonstrated strong resilience with a remarkable GDP growth rate of 7.8% in the first quarter of the current fiscal year (April-June 2025). This growth surpasses the 6.5% recorded during the same period last year by 1.3 percentage points, outperforming earlier forecasts.
This marks the highest quarterly GDP growth India has achieved in the past five quarters. For context, China, one of the world’s largest economies, recorded a growth rate of 5.2% in the same quarter, positioning India ahead among major global economies.
The agriculture sector contributed significantly with a 3.7% growth, while the services sector showed robust expansion at 9.3%. Both sectors have improved considerably compared to last year’s first quarter growth rates of 1.5% and 6.8%, respectively. On the other hand, growth in the manufacturing sector slowed to 7.6% from 10.1% in the previous year’s corresponding quarter.
Looking ahead, the Reserve Bank of India (RBI) projects an overall GDP growth of 6.5% for the fiscal year 2025-26, with quarterly projections of 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.
RBI Governor Sanjay Malhotra noted that favorable factors such as a normal southwest monsoon, low inflation, and a stable macroeconomic environment are expected to support sustained economic growth throughout the year.
This strong start to the fiscal year underlines India’s growing economic strength and its ability to navigate external challenges, reaffirming confidence in the country’s long-term growth prospects.
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