Key Takeaways
- India’s GDP surges 7.8 pc in Q1 FY 26, driven by services and manufacturing sectors.
- The services sector grows at 7.6 pc in Q1 FY 26, making it a key driver of India’s GDP growth.
- Manufacturing and construction sectors also record robust growth in Q1 FY 26, contributing to overall GDP growth.
New Delhi: India’s economy sprinted ahead in the first quarter of FY 2025-26, with real Gross Domestic Product (GDP) surging by 7.8 pc surpassing the 6.5 pc growth recorded in Q1 of FY 2024-25, official data released by the National Statistics Office (NSO).
The Gross Value Added (GVA) at basic prices also registered a robust 7.6 pc growth in April–June, powered by a buoyant services sector and solid performance in manufacturing and construction.
The National Statistics Office (NSO) reported buoyant growth in the services sector, which, combined with robust manufacturing and construction activity, led to a 7.6 pc real GVA growth in Q1 FY 2025-26.
With these numbers, India has opened FY26 on a strong note, continuing its run as one of the fastest-growing economies in the world.
The agriculture and allied sector maintained stability, growing 3.7 pc compared with just 1.5 pc in Q1 of last year.
The secondary sector saw a strong push from manufacturing (7.7 pc) and construction (7.6 pc), both clocking above 7.5 pc growth. However, this momentum was offset by a sharp 3.1 pc contraction in mining and quarrying and a sluggish 0.5 pc rise in utilities.
The spotlight, however, remained firmly on the tertiary sector, which emerged as the growth engine with double-digit pace in trade, transport, communication, finance, and other services highlighted the strength of India’s consumer and business demand.
On the demand side, Private Final Consumption Expenditure (PFCE) grew 7 pc, indicating steady household spending, though slightly lower than the 8.3% growth in corresponding period of previous financial year.
Gross Fixed Capital Formation (GFCF), a key indicator of investment, climbed 7.8 pc, higher than the 6.7 pc in Q1 FY25, signaling continued thrust on capital expenditure.
Crucially, Government Final Consumption Expenditure (GFCE) rebounded sharply, soaring 9.7 pc in nominal terms, compared with a subdued 4 pc in the same quarter last year, giving an added boost to overall demand.
National Statistics Office (NSO) is a government agency responsible for collecting, processing and disseminating statistical data and providing statistical analysis to support National development and Policy making.
