India’s economy increases by 7.8 % in the 26th fiscal year: What works to increase the increase?

The Indian economy grew at a rate of 7.8 % faster in April quarterly to the fiscal year 26, an increase of 6.5 % a year ago, driven by strong performance across sectors and supported by flexible local demand. This enhances the site of India as the fastest growing economy and is close to becoming the third largest economy in the world by 2030, with GDP of $ 7.3 trillion.

Services, manufacturing drives the road

Service sector has been the largest shareholder, expanding by 9.3 %, while manufacturing and construction grew by 7.7 % and 7.6 %, respectively. The allies sectors such as agriculture, forests and mining also witnessed an increase in growth by 3.7 %, compared to 1.5 % in the same quarter of last year.

“The numbers of this quarter reflect the flexibility and momentum of the economy, which is based on the basics of the strong macroeconomic,” said the Minister of Economic Affairs, Anouradha Thakur.

Industrial growth, demand, and consumption consumption for consumption

According to an official edition, the IIP Industrial Production Index increased to 3.5 % in July 2025, an increase of 1.5 % in June. Manufacturing – especially in basic minerals and electrical equipment – was a major motor.

The capital expenditures for the fiscal year reached 25 10.52 crushers, and the consumption has grown by 7.0 %, with the help of a recovery in rural demand. Government consumption increased by 9.7 %, increasing the momentum of local growth.

Inflation decreases to the lowest multi -year level

Inflation showed a noticeable improvement. The consumer price index fell to 1.55 % in July 2025, the lowest level since June 2017. Food prices have witnessed -1.76 %, providing relief to families and increasing purchase, as the statement added.

The flexible targeting policy of RBI is effective, while inflation remains within the target range of 2-6 % for three consecutive quarters.

Jobs are high, the labor market strengthens

India has created 17 rupees over the past decade, according to the issue. The workforce participation rate increased to 60.1 % in 2023-24, with a double women’s participation. The unemployment rate decreased to 3.2 %, and youth unemployment decreased to less than the global average.

The creation of rural job opportunities increased, while services have been the main source of employment in urban India.

Strong investment momentum

Foreign direct investment (FDI) touched $ 81 billion in the fiscal year 25, with cumulative flows since 2000 crossing $ 1.05 trillion. Stock flows increased by 27 % on an annual basis between April to December 2024. Local institutional investors have also been purchased.

India’s Forex reserves amounted to $ 695.5 billion as of July 2025.

The expansion of goods tax, services and repairs

India now has more than 1.52 rupees for commodity tax recordings and services, eight years after the launch of the tax reform. Encouraging, 20 % of taxpayers have at least one woman, and 14 % of women owned by women. The next wave of commodity and services tax repairs, due in October 2025, MSMES will target the basics.

Enhancing global confidence and classifications

International institutions have echoed the expectations of positive growth of India:

• International Monetary Fund projects 6.4 % growth for 2025 and 2026.
• S&P Global promoted the sovereign rating of India for the first time in 18 years.
• Fitch Ratses confirmed India’s rating in “BBB-” with a straight look.

Reforms that drive structural growth

The leading government initiatives reshape the economic scene:

• The PLI chart attracted 1.76 rupees in investments.
• India has sought internet users to 97 rupees.
• The PMJDY 56 Cruiser Carr has an account, 55 % preserved by women.
• In India, India has been made to the second largest mobile phone manufacturer.

With the increase in private investment, inflation under control, and public spending on the high infrastructure, medium -term growth prospects in India are still strong. These trends enhance the government’s vision of VIKSIT BHARAT by 2047-a sophisticated country, self-dependent, competitive globally.