GDP growth in India hits 7.8% for Q1 FY26, marking a five-quarter peak and beating market expectations.

India’s economy continues to show strong momentum, defying global uncertainties and tariff concerns, with GDP growth accelerating to 7.8% in Q1 FY26 (April–June), compared to 6.5% in the same quarter of FY25, according to data released by the Ministry of Statistics.

“This rise, from 6.5% in the last quarter, highlights the resilience and strength of the Indian economy, both at home and on the global stage,” economist Prabhat Ranjan said.

He further noted that India has achieved significant economic progress in the past 11 years under Prime Minister Narendra Modi’s leadership, with strict expenditure control and a clear push toward the $5-trillion economy target.

Government Final Consumption Expenditure (GFCE) also saw a sharp rise, recording a 9.7% growth in Q1 FY26, against 4% in Q1 FY25.

Key drivers of this growth include a strong agricultural sector and the government’s heavy investments in infrastructure projects such as highways, railways, ports, and airports. These efforts have kept India ahead as the fastest-growing major economy, even amid the global slowdown.

The growth figure for April–June also surpassed the RBI’s projection of 6.5% for the quarter. However, the RBI has maintained its GDP forecast for FY26 at 6.5%, citing expectations of strong rural demand from a good monsoon and sustained government spending on infrastructure.

Meanwhile, the Central government’s revenue collection stood at ₹10,95,209 crore during April–July FY26, amounting to 31.3% of the budget estimates, according to Finance Ministry data.