India’s economy grows in June quarter more than expected, 7.8%

Mumbai’s trial on July 6, 2025.

Purit Paranjpe | AFP | Gets the image

India’s economy has grown from a faster than the expected annual rate of 7.8% in the quarter by the end of June, the increased production, construction and service sector.

The annual production and services increase was 7.7%and 9.3%respectively, and the construction sector increased by 7.6%.

While the total rough printing of the domestic product for the first quarter of the 2026 financial year exceeded 6.7% of the forecast of economists in the Reuters poll, economists showed signs of slowing.

India’s nominal GDP does not take into account inflation and deflation-up to 8.8% in April-June compared to 10.8% in the previous quarter.

“GDP nominal growth is lower than in the previous quarters, but because the deflator is so soft that the real GDP looks extremely strong,” says Anubhuti Sahi, head of Indian economic research in standard statutes.

The deflator measures the amount by which the total output is reduced by inflation.

While the deflator has played an important role in making the real GDP growth look better, Sahai says the corporate production sector.

View

On Wednesday, 50% of Indian import tariffs came into force, and most economists who saw that the trading meter were playing growth for India’s economy in nearby quarters.

On Friday, Indian Rupee fell to record lows, breaking the 88 dollar mark for the first time about the concern that sharp tariffs in the US could harm the growth and further streams of the portfolio.

However, “an unexpected acceleration in India’s GDP in Q2 means that the economy is still going to expand this year by 7%, despite the upcoming hit of punitive American tariffs,” said Joe Maher, Assistant Economics.

To stop the impact of tariffs in India, in June, in June. While the Central Bank maintained the status of -quarters in its policy in August, there are signs that it could reduce rates in the second half of the year when growth is slowed.

The World Bank project and the International Monetary Fund that the country’s economy will grow by 6.3% and 6.4% respectively for 2026.

Source link