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India GDP grows 7.8%, beating RBI's 7% forecast
The Indian Express··1 Sept
India's real GDP grew 7.8 percent in the April-June quarter, above the Reserve Bank of India's 7.0 percent forecast, MoSPI data showed on Monday. Manufacturing rose 9.2 percent and services 10 percent, with the financial and real estate group at 12.1 percent. Gross value added rose 8.2 percent. Prior-quarter growth was revised to 8.6 percent.
Prism
What It Means For You
- The print beats both the RBI's 7 percent Q1 call and a Reuters poll expectation of 7.1 percent.
- Personal consumption rose 7.1 percent and investment grew nearly 12 percent in the quarter.
- Nominal GDP rose 10.3 percent, against the Budget's 10 percent nominal assumption path for FY 2026-27.
What's Happening
- Growth is lower than the revised 8.6 percent in January-March but above 6.9 percent a year earlier.
- FY 2025-26 GDP growth was revised up to 7.8 percent from 7.7 percent.
- Economists noted resilience despite higher energy prices linked to the West Asia conflict.
What the Sector Numbers Show
- Manufacturing growth accelerated from 8.3 percent a year earlier to 9.2 percent.
- The financial, real estate, IT and professional services group rose from 8.8 percent to 12.1 percent.
- Credit growth across farm, industry and services stayed healthy, with loan growth at 18.3 percent at end-June, per the RBI bulletin cited.
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