In enemy race: GDP growth is 7.8 % strong start to the 26th fiscal year, with the services sector in the foreground

The Indian economy showed strong growth in the first quarter of the fiscal year 2025-26 (the first quarter of the fiscal year 2025-26), as mentioned by the Ministry of Statistics and the implementation of the program (MOSPI). The country’s real gross domestic product expanded by 7.8 % compared to 6.5 % in the first quarter of the fiscal year 2024-25, reflecting the flexibility and strength of the various sectors.

The most prominent major landmarks

• The real GDP of Q1 FY 2025-26 47.89 rupees, which represents 7.8 % of 44.42 rupees in the same quarter of the previous fiscal year.
• Nominal GDP also showed significant growth, reaching 86.05 rupees, an increase of 8.8 % of 79.08 rupees in the first quarter of the fiscal year 2024-25.
• The total total value (GVA) of Q1 FY 2025-26 is estimated at 44.64 rupees, with 7.6 % growth year on annual basis.
• The nominal GVA increased to 78.25 rupees, an increase of 8.8 % compared to 71.95 rupees in the first quarter of the fiscal year 2024-25.

The impressive performance was largely driven by the prosperous growth in the services sector, which witnessed a remarkable growth of 9.3 % in the quarter. This is a significant increase in the growth of 6.8 % recorded during the same period last year. The secondary sector, especially manufacturing and construction, showed strong growth, as it recorded 7.7 % growth rates and 7.6 %, respectively.

Sectoral performance

• The agricultural sector, which was crucial for the growth of India, has witnessed a growth rate of 3.7 % in the first quarter of the fiscal year 2025-26, which was an improvement in the growth rate of 1.5 % in the same quarter of last year.
• Mining and mining supplies (-3.1 %), electricity, gas and water supply (0.5 %) have seen slower growth rates, challenges indicating these sectors.
• The third sector, primarily driven by trade, hotels, transportation and financial services, recorded an impressive growth of 9.3 % at constant prices.

The expenses of the final consumption of the government also flourished, as it published a growth of 9.7 % by nominal, compared to 4.0 % in the first quarter of the fiscal year 2024-25. However, private consumption showed a slight slowdown, with real final consumption expenses (PFC) by 7.0 %, compared to 8.3 % in the same period last year.

In addition, investment activities in the country are on an ascending path, with a total form of fixed capital (GFCF) by 7.8 % at fixed prices, higher than growth 6.7 % registered in the first quarter of the fiscal year 2024-25.

Future expectations
As the Indian economy continues to show strong growth in various sectors, experts remain optimistic about economic expectations for the rest of the fiscal year 2025-26. Data will be reviewed, based on indicators of the main sectors, with more comprehensive data available in the coming months.

The next semester GDP estimates will be released for the Q2 of FY 2025-26 on November 28, 2025.