India Posts 7.8% Q1 Growth as Manufacturing Jumps 9.2%
Updated
Updated · The Hindu · Sep 1
India Posts 7.8% Q1 Growth as Manufacturing Jumps 9.2%
3 articles · Updated · The Hindu · Sep 1
Summary
April-June GDP growth came in at 7.8%, beating expectations of a slowdown to 6%-7% despite concerns over the West Asia crisis.
Manufacturing expanded 9.2%—a three-quarter high—while services stayed robust, helped by last September’s GST cut, the RBI’s 125-basis-point easing through 2025, and some front-loaded output.
Capital creation also appears to have strengthened, offering support beyond consumption even as July industrial data pointed to weak rural demand.
Oil above $80 a barrel remains a major risk for India, which imports 85%-90% of its crude, while Modi has urged households to buy local, curb foreign travel and avoid unnecessary gold purchases.
The outlook is tougher: the RBI sees inflation reaching 5.9% in October-December 2026, services exports face weaker global demand and AI competition, and a deficient monsoon could further hit rural spending.