In India, the Gross Domestic Product (GDP) has shown a growth rate of 7.8% in Q1 FY2026 as the first quarter ended June 30, 2025. This information has been procured from the data released by the Ministry of Statistics and Programme Implementation (MoSPI). This growth rate in the GDP is remarkable because it is higher than the 6.5% in the corresponding period in 2024. The credit rating agency S&P has forecasted that the country’s GDP is expected to expand 6.8 per cent annually over the next three years.
Why the growth rate of 7.8% in Q1 FY2026 matters in the global scenario?
The growth rate of 7.8% in Q1 FY2026 matters for India, especially in the global scenario because of the 50% tariffs imposed by the United States of America’s President Donald Trump on India. According to a report by American multinational investment bank and financial services company Jefferies, the reason behind this is, “Tariffs are primarily the consequence of the American president’s personal pique that he was not allowed to play a role in seeking to end the long-running acrimony between India and Pakistan.”
How all the sectors of the Indian economy registered a strong growth rate?
The agricultural sector registered a growth rate of 3.7% in the first quarter of 2025-26. It is a strong growth rate when compared with the growth rate of 1.5% in the first quarter of the last financial year. There has been a growth rate of 7.7% in the manufacturing sector and 7.6%. A growth rate of 9.3% was shown in the tertiary sector during the first quarter of 2025-2026. This has increased when compared to the corresponding 6.8% in Q1 of FY 2024-25, as stated on the Press Information Bureau.
The risk on the Indian economy still remains
Despite the robust growth rate of 7.8%, India has to remain vigilant due to the 50% tariffs imposed by the United States of America’s President Donald Trump. The United States of America has imposed additional tariffs or penalty for Russian imports only on India. No such measures have been imposed on Japan and Turkey.
