Mumbai horizon on July 6, 2025.
Punit Paranjpe | AFP | Gety pictures
The Indian economy grew at an annual rate faster than 7.8 % in the quarter to the end of June, supported by the manufacturing, construction and services sectors.
The growth of annual manufacturing and services was 7.7 % and 9.3 %, respectively, with the expansion of the construction sector by 7.6 %.
While the gross domestic product of the first quarter of the fiscal year 2026 was 6.7 % higher than the economists in the Reuters poll, economists pointed to signs of slowing down.
The nominal GDP in India-which does not explain inflation or contraction-has decreased to 8.8 % during the month of April to June, compared to 10.8 % in the previous quarter.
“GDP growth is less than the previous quarters, but because the collapsed is so soft that the real gross domestic product looks very strong,” says Anubhuti Sahab, head of Indian Economic Research at Standard Charreed.
The laboratory measures the amount through which the total output is reduced by inflation.
While Deflator has played a major role in making real gross domestic GDP looks better, sahay says in the profits of the front companies sector well.
Expectations
The US tariff entered 50 % on Indian imports on Wednesday, as most economists saw that the trade measure plays in softening the growth of the Indian economy in the coming quarters.
The Indian rupee fell to record its lowest levels on Friday, and the brand calms 88 per time for the first time on fears that the American tariff is very slope can hurt growth and strike portfolio flows.
However, the sudden acceleration in the growth of GDP of India in the second quarter means that the economy is still on its way to expanding by 7 % in the world this year, despite the blow coming from the US punitive tariff, “said Joe Maher, an economist in Capital Economics.
To reduce the impact of the central bank’s central bank policy in the United States to 5.5 %, which reduces 50 basis points, in June. While the Central Bank maintained the current situation in the August policy, there are indications that it may reduce prices again in the second half of the year if the growth decreases.
The World Bank Fund and the International Monetary Fund project, which will grow the country’s economy by 6.3 % and 6.4 %, respectively, for the fiscal year 2026.
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