India GDP Growth Rate: Robust Performance Amid Global Headwinds

Introduction: India’s Economic Triumph Against All Odds

In an era marked by global economic uncertainty, trade wars, and persistent geopolitical tensions, India has emerged as a beacon of economic resilience with an explosive GDP growth rate of 7.8% in the April-June quarter of 2025. This remarkable performance not only surpassed market expectations but also cemented India’s position as the world’s fastest-growing major economy, demonstrating extraordinary strength in the face of mounting global headwinds.

The GDP of India has consistently defied pessimistic forecasts, showcasing the nation’s robust economic fundamentals and the effectiveness of its policy framework. This comprehensive analysis delves deep into the factors driving India’s exceptional economic performance, examining sector-specific contributions, analyzing the challenges that lie ahead, and exploring what this trajectory means for India’s long-term economic prospects on the global stage.

The Significance of India’s Economic Momentum

India’s 7.8% GDP growth rate represents more than just statistical achievement—it embodies the nation’s unwavering commitment to economic progress despite facing unprecedented external pressures. This growth figure stands in stark contrast to the sluggish performance of many developed economies, highlighting India’s unique position as a growth engine in an otherwise uncertain global economic landscape.

The achievement becomes even more remarkable when viewed against the backdrop of rising protectionism, supply chain disruptions, and volatile commodity prices that have characterized the global economy in recent times. India’s ability to maintain such robust growth rates while navigating these challenges speaks volumes about the strength of its domestic demand, the resilience of its financial institutions, and the effectiveness of its economic policies.

Historical Context and Comparative Performance

Five-Quarter Growth Trajectory Analysis

India’s GDP growth rate of 7.8% in Q1 FY26 marks the strongest performance in five consecutive quarters, representing a significant acceleration from the 7.4% recorded in the previous quarter and a substantial improvement over the 6.7% registered in the corresponding period of the previous year. This upward trajectory demonstrates the sustained nature of India’s economic recovery and the deepening momentum of its growth story.

The quarter-on-quarter improvement of 0.4 percentage points from 7.4% to 7.8% indicates that India’s economy is not just maintaining its growth momentum but is actually accelerating despite global challenges. This acceleration is particularly significant given that most major economies are experiencing deceleration or stagnation during the same period.

International Growth Comparisons

When placed in international context, India’s 7.8% growth rate significantly outpaces other major economies. The United States, despite its technological advantages and mature financial markets, is growing at approximately 2.5-3.0%, while European economies are struggling to maintain growth rates above 1-2%. China, once considered the global growth champion, is experiencing a slowdown with growth rates hovering around 5-6%, making India’s performance even more impressive.

This comparative advantage positions India as the undisputed leader in global economic growth, attracting international attention from investors, policymakers, and economic analysts worldwide. The sustained nature of this growth differential suggests that India is not experiencing a temporary surge but rather a structural transformation that could persist over the medium to long term.

Comprehensive Sectoral Analysis: The Engines of Growth

Services Sector: The Powerhouse of Economic Expansion

The services sector, contributing over 55% to India’s GDP, delivered an outstanding 9.3% growth rate, serving as the primary catalyst for the economy’s robust performance. This sector’s explosive growth reflects the fundamental transformation of India’s economic structure and its emergence as a global services hub.

Financial Services Renaissance: The financial services sub-sector experienced remarkable growth, driven by increased lending activity, rising digital payments adoption, and expanded access to financial services across rural and urban areas. Banks reported improved asset quality, reduced non-performing assets, and increased credit disbursal, indicating a healthy financial ecosystem that supports broader economic growth.

Information Technology and Digital Services: India’s IT sector continued its impressive trajectory, benefiting from global digital transformation trends, increased demand for cloud services, and the growing adoption of artificial intelligence and machine learning solutions. The sector’s contribution to exports remained robust despite global economic uncertainties, demonstrating the resilience and competitiveness of Indian IT services.

E-commerce and Digital Economy: The digital economy segment witnessed explosive growth, with e-commerce platforms, digital payments, and online services experiencing unprecedented expansion. The government’s Digital India initiative has created a conducive environment for digital innovation, resulting in increased productivity and efficiency across various service sectors.

Transport and Logistics: The transport sector benefited significantly from increased economic activity, infrastructure development, and the implementation of the Goods and Services Tax (GST), which has streamlined interstate movement of goods. The logistics sector’s growth reflects the overall health of the economy and increased trade volumes.

Hospitality and Tourism Recovery: The hospitality sector demonstrated remarkable resilience, recovering strongly from pandemic-induced disruptions. Domestic tourism surged, while international tourist arrivals began recovering, contributing positively to the services sector’s overall performance.

Manufacturing Sector: Industrial Renaissance in Progress

India’s manufacturing sector achieved a robust 7.7% growth rate, indicating a significant revival in industrial activity and reflecting the success of various government initiatives aimed at promoting domestic production and reducing import dependence.

Production Linked Incentive (PLI) Scheme Impact: The PLI scheme has been instrumental in boosting manufacturing across key sectors including electronics, pharmaceuticals, automobiles, and textiles. The scheme’s success in attracting both domestic and foreign investment has resulted in increased production capacity and enhanced competitiveness of Indian manufactured goods.

Automotive Industry Resurgence: The automotive sector, a key component of India’s manufacturing base, experienced strong growth driven by increased domestic demand, export opportunities, and the ongoing transition toward electric vehicles. Both passenger and commercial vehicle segments contributed positively to manufacturing growth.

Electronics and Consumer Goods: The electronics manufacturing sector continued its impressive growth trajectory, benefiting from the PLI scheme and increased domestic demand for electronic goods. The sector’s growth has been particularly strong in smartphone manufacturing, where India has emerged as a global production hub.

Pharmaceutical and Chemical Industries: These sectors maintained their growth momentum, with pharmaceutical exports remaining strong and the chemical industry benefiting from global supply chain diversification trends. India’s position as the “pharmacy of the world” has been further strengthened during this period.

Textile and Apparel Manufacturing: The textile sector showed signs of recovery, with increased export orders and domestic demand supporting growth. Government initiatives to promote technical textiles and sustainable manufacturing practices have contributed to the sector’s improved performance.

Construction Sector: Building the Future

The construction sector’s 7.6% growth rate reflects the ongoing infrastructure development boom and rising urban housing demand. This sector’s performance is crucial for India’s long-term economic development and employment generation.

Infrastructure Development Projects: Large-scale infrastructure projects including highways, railways, airports, and ports have been major contributors to construction sector growth. The National Infrastructure Pipeline (NIP) has provided a roadmap for sustained infrastructure development, ensuring continued growth in this sector.

Urban Housing Demand: Rising urbanization and increased purchasing power have driven demand for residential construction. The Pradhan Mantri Awas Yojana (PMAY) and other housing schemes have further boosted construction activity in both urban and rural areas.

Smart Cities Mission Impact: The Smart Cities Mission has catalyzed construction activity in selected cities, leading to improved urban infrastructure and enhanced quality of life. These projects have generated significant employment and contributed to the sector’s growth.

Commercial and Industrial Construction: The growth of businesses and industries has driven demand for commercial and industrial construction, including office spaces, warehouses, and manufacturing facilities.

Agriculture and Allied Activities: Rural Economy Resilience

The agriculture sector achieved a 3.7% growth rate, marking a significant improvement from previous periods and demonstrating the resilience of India’s rural economy despite various challenges.

Improved Sowing Patterns: Better planning and implementation of sowing activities, supported by government initiatives and improved seed varieties, contributed to agricultural growth. The adoption of climate-resilient crops and modern farming techniques has enhanced productivity.

Allied Activities Expansion: Livestock, dairy, fisheries, and poultry sectors have shown strong growth, diversifying rural income sources and reducing dependence on traditional crop production. The expansion of food processing industries has created additional value-added opportunities for farmers.

Government Support Measures: Various government schemes including the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), crop insurance programs, and minimum support price mechanisms have provided crucial support to the agricultural sector.

Rural Infrastructure Development: Improved rural infrastructure, including better connectivity, storage facilities, and market access, has contributed to agricultural sector growth by reducing post-harvest losses and improving farmer incomes.

Demand-Side Drivers: Understanding Consumer and Investment Behavior

Private Consumption: The Foundation of Growth

Private consumption expanded by a robust 7.0%, underpinning the overall economic growth and reflecting improved consumer confidence and purchasing power across various income segments.

Urban Consumer Spending Patterns: Urban consumption has been particularly strong, driven by rising disposable incomes, improved employment opportunities, and increased access to credit. Categories such as consumer durables, automobiles, and services have experienced significant growth.

Rural Consumption Recovery: Rural consumption has shown signs of recovery, supported by improved agricultural incomes, government welfare schemes, and better rural infrastructure. The recovery in rural demand has been crucial for sustaining overall consumption growth.

Digital Payment Adoption: The widespread adoption of digital payment systems has facilitated consumer spending and improved transaction efficiency. The growth of e-commerce and online services has further boosted private consumption.

Credit Availability: Improved credit availability from banks and non-banking financial companies has supported consumer spending, particularly in categories such as housing, automobiles, and consumer durables.

Government Expenditure: Strategic Public Investment

Government expenditure increased by nearly 10%, reflecting the administration’s commitment to supporting economic growth through strategic public investment and welfare schemes.

Infrastructure Investment: Significant government spending on infrastructure projects including roads, railways, ports, and digital infrastructure has created multiplier effects throughout the economy. These investments have not only supported immediate economic growth but also laid the foundation for long-term competitiveness.

Welfare and Social Security Programs: Expanded social security programs, including direct benefit transfers, employment guarantee schemes, and health insurance coverage, have supported household incomes and consumption, particularly among vulnerable populations.

Defense and Security Expenditure: Strategic investments in defense and internal security have contributed to government expenditure while also supporting domestic manufacturing through defense procurement policies that prioritize local production.

Education and Healthcare Investment: Increased public investment in education and healthcare infrastructure has supported long-term human capital development while contributing to immediate economic growth.

Investment Climate: Business Confidence Revival

Gross Fixed Capital Formation (GFCF) expanded by 7.8%, indicating strong business confidence and willingness to invest in productive capacity, which is crucial for sustaining long-term economic growth.

Corporate Investment Revival: Private sector companies have increased their capital expenditure, reflecting improved business sentiment and confidence in India’s economic prospects. This investment is crucial for enhancing productivity and competitiveness.

Foreign Direct Investment (FDI) Trends: India continues to attract significant foreign investment across various sectors, with FDI inflows remaining robust despite global economic uncertainties. The government’s efforts to improve ease of doing business and provide a stable policy environment have been instrumental in maintaining investor confidence.

Public Sector Investment: Government and public sector enterprises have maintained high levels of investment in strategic sectors, supporting overall investment growth and creating complementary investment opportunities for the private sector.

Infrastructure and Real Estate Investment: Continued investment in infrastructure and real estate development has supported the investment component of GDP growth, with both public and private sector participation.

Nominal GDP Performance: Reflecting Real Economic Strength

India’s nominal GDP growth strengthened to 8.8% in Q1 FY26, highlighting the real momentum behind the country’s economic engine. This robust nominal growth indicates that India’s economic expansion is not merely a statistical artifact but represents genuine value creation and economic dynamism.

The strong nominal growth rate reflects several positive factors including controlled inflation, robust real economic activity, and healthy price dynamics across various sectors. This performance suggests that India’s economy is experiencing balanced growth that encompasses both quantity and quality improvements.

Global Headwinds and India’s Remarkable Resilience

Trade Tensions and Tariff Challenges

India’s economic performance becomes even more impressive when viewed against the backdrop of escalating global trade tensions and protectionist policies. Recent tariff hikes by major economies, particularly the United States, were expected to create significant headwinds for emerging market economies like India.

Economists had initially estimated that sustained tariff measures could reduce India’s growth by 0.6-0.8 percentage points, making the actual achievement of 7.8% growth even more remarkable. This resilience demonstrates India’s reduced dependence on exports for growth and the strength of its domestic demand drivers.

Export Diversification Strategy: India has successfully diversified its export markets and products, reducing vulnerability to trade disputes with any single country. This diversification has enabled the country to maintain export growth despite global trade tensions.

Import Substitution Success: Various government initiatives promoting domestic manufacturing have reduced India’s import dependence in key sectors, making the economy more resilient to external trade shocks.

Currency Volatility and Exchange Rate Management

The Indian rupee’s recent weakness, moving beyond ₹88 per U.S. dollar, presented both challenges and opportunities for the Indian economy. While currency depreciation can boost export competitiveness, it also risks imported inflation and financial stability concerns.

Reserve Bank of India Intervention: The RBI’s strategic intervention in foreign exchange markets has helped manage excessive volatility while allowing market forces to determine the exchange rate. This balanced approach has maintained confidence in the Indian currency while supporting export competitiveness.

Current Account Management: Despite currency pressures, India has managed its current account deficit effectively, ensuring that external imbalances do not pose risks to macroeconomic stability.

Foreign Exchange Reserves: India’s substantial foreign exchange reserves provide a crucial buffer against external shocks and help maintain confidence in the economy’s ability to manage currency volatility.

Credit Rating Stability and International Confidence

International credit rating agencies have reaffirmed India’s growth outlook and maintained investment-grade ratings, citing strong economic fundamentals and fiscal discipline. This international endorsement provides crucial validation of India’s economic policies and enhances investor confidence.

Fiscal Discipline Recognition: Rating agencies have acknowledged India’s commitment to fiscal consolidation while maintaining growth-supportive policies. This balance has been crucial in maintaining international credibility.

Structural Reform Progress: The recognition of India’s ongoing structural reforms, including GST implementation, insolvency and bankruptcy code, and financial sector reforms, has contributed to positive rating outlooks.

International Institutional Forecasts and Projections

International Monetary Fund (IMF) Outlook

The IMF has revised India’s GDP forecast upward to 6.4% for both 2025 and 2026, citing the country’s resilience in consumption and investment. This upward revision reflects growing international confidence in India’s economic management and growth prospects.

The IMF’s forecast recognizes India’s ability to maintain robust growth despite global challenges, highlighting the strength of domestic demand drivers and the effectiveness of policy responses to external shocks.

Key IMF Observations:

• Strong domestic demand resilience
• Effective monetary policy framework
• Improved business environment
• Robust financial sector performance
• Sustainable fiscal policy trajectory

United Nations Economic Assessment

The United Nations has adopted a slightly more cautious stance, trimming its projection to 6.3% while pointing to risks from global demand weakness and trade disputes. This conservative approach reflects concerns about potential external vulnerabilities.

Despite the slightly lower projection, the UN acknowledges India’s strong fundamentals and its role as a key driver of global economic growth, particularly for developing economies.

Reserve Bank of India’s Domestic Perspective

The RBI has maintained its growth projection at 6.5% for FY26 while keeping interest rates unchanged to balance growth objectives with inflationary concerns. This balanced approach reflects the central bank’s confidence in the economy’s underlying strength while remaining vigilant about potential risks.

The RBI’s growth projection is based on detailed analysis of domestic economic conditions and reflects the central bank’s assessment of various growth drivers and potential challenges.

Detailed Risk Assessment and Mitigation Strategies

Global Trade and Tariff Risks

The escalation of global trade tensions poses significant risks to India’s export-oriented sectors. However, India’s growing domestic market and successful import substitution initiatives have reduced vulnerability to external trade shocks.

Mitigation Strategies:

• Export market diversification
• Product portfolio expansion
• Quality and competitiveness improvements
• Regional trade agreement participation
• Bilateral trade relationship strengthening

Currency and Financial Market Risks

Currency volatility and potential capital flow reversals represent ongoing risks to macroeconomic stability. However, India’s strong foreign exchange reserves and improved current account management provide resilience against such shocks.

Risk Management Measures:

• Flexible exchange rate policy
• Foreign exchange reserve accumulation
• Current account deficit monitoring
• Capital flow management measures
• Financial sector strengthening

Inflationary Pressures and Policy Responses

Rising global commodity prices and potential supply chain disruptions could contribute to inflationary pressures, requiring careful policy balancing between growth and price stability.

Policy Response Framework:

• Targeted monetary policy measures
• Supply-side intervention strategies
• Strategic petroleum reserve utilization
• Food security and distribution systems
• Administrative price controls where necessary

Investment Climate and Business Confidence

Maintaining strong investment climate and business confidence is crucial for sustaining growth momentum. Continued reforms and policy clarity will be essential for supporting private sector investment.

Investment Promotion Measures:

• Ease of doing business improvements
• Regulatory simplification and clarity
• Infrastructure development acceleration
• Tax policy stability and predictability
• Financial sector deepening initiatives

Policy Framework for Sustained Growth

Domestic Demand Enhancement Strategies

Urban Consumption Support:

• Employment generation through skill development programs
• Infrastructure development creating urban employment opportunities
• Access to affordable credit for consumption
• Quality improvement in urban services

Rural Demand Strengthening:

• Agricultural income enhancement through productivity improvements
• Rural infrastructure development
• Diversification of rural economic activities
• Direct benefit transfer program optimization

Export Competitiveness and Trade Policy

Competitive Advantage Building:

• Technology upgradation and innovation support
• Quality certification and standards improvement
• Logistics and supply chain efficiency enhancement
• Brand building and market development assistance

Trade Partnership Expansion:

• Regional comprehensive economic partnership participation
• Bilateral trade agreement negotiation
• South-South cooperation strengthening
• Emerging market partnership development

Infrastructure Development Acceleration

Transportation Infrastructure:

• Highway network expansion and quality improvement
• Railway modernization and capacity enhancement
• Port development and efficiency improvement
• Airport infrastructure development

Digital and Energy Infrastructure:

• Telecommunications network expansion and 5G deployment
• Renewable energy capacity addition
• Power grid modernization and efficiency
• Digital governance platform development

Monetary and Financial Sector Policies

Monetary Policy Framework:

• Inflation targeting framework maintenance
• Financial stability oversight strengthening
• Credit flow optimization to productive sectors
• Exchange rate flexibility with intervention as needed

Financial Sector Development:

• Banking sector health improvement
• Non-banking financial company regulation
• Capital market depth and liquidity enhancement
• Financial inclusion program expansion

India’s Global Economic Position and Future Trajectory

Comparative Economic Performance

India’s position as the world’s fastest-growing major economy is expected to be sustained over the medium term, with growth rates likely to remain significantly higher than advanced economies and most emerging markets.

Global Growth Leadership:

• Sustained GDP growth rates above 6-7%
• Demographic dividend utilization
• Digital economy expansion
• Manufacturing sector development
• Services sector global competitiveness

Economic Size and Global Ranking Projections

India is projected to become the fourth-largest economy by nominal GDP by the end of 2025, overtaking Japan in terms of purchasing power parity (PPP). This ascension reflects the sustained nature of India’s economic growth and its increasing global significance.

Milestone Achievements Expected:

• Fourth-largest economy by nominal GDP (2025)
• Third-largest economy by PPP (achieved)
• Significant global trade share expansion
• Enhanced global financial market integration
• Increased influence in international economic forums

Role in Global Economic Recovery

India’s robust economic performance positions it as a crucial driver of global economic growth, particularly as advanced economies face slower growth prospects and demographic challenges.

Global Growth Contribution:

• Significant contribution to world GDP growth
• Engine of growth for South-South cooperation
• Model for emerging market development
• Source of global demand for commodities and intermediate goods
• Provider of skilled services to global markets

Technology and Innovation as Growth Catalysts

Digital Transformation Impact

India’s digital transformation has been a key factor in supporting economic growth across sectors. The Digital India initiative has created an enabling environment for innovation and productivity improvements.

Digital Economy Growth Drivers:

• Unique Identification (Aadhaar) system enabling financial inclusion
• Unified Payments Interface (UPI) revolutionizing payment systems
• Government service delivery digitization
• E-commerce platform expansion
• Digital skills development and training

Innovation Ecosystem Development

The development of India’s innovation ecosystem, including startup entrepreneurship, research and development activities, and technology adoption, has contributed significantly to economic dynamism.

Innovation Supporting Factors:

• Startup India initiative and ecosystem development
• Research and development investment incentives
• Technology incubation and acceleration programs
• Intellectual property protection strengthening
• Public-private partnership in innovation

Sustainability and Environmental Considerations

Green Growth Initiatives

India’s commitment to sustainable development and environmental protection has been integrated into its economic growth strategy, ensuring that growth is environmentally sustainable and socially inclusive.

Sustainability Measures:

• Renewable energy capacity expansion targets
• Electric vehicle adoption promotion
• Circular economy principles implementation
• Water resource management improvement
• Waste management and recycling initiatives

Climate Change Adaptation and Mitigation

India’s approach to addressing climate change challenges while maintaining robust economic growth demonstrates the country’s commitment to global environmental goals.

Climate Action Integration:

• Nationally Determined Contributions (NDC) implementation
• Green financing and investment promotion
• Climate-resilient infrastructure development
• Carbon emission intensity reduction
• International climate cooperation participation

Social Inclusion and Equitable Growth

Inclusive Development Strategies

India’s economic growth strategy emphasizes social inclusion and equitable development, ensuring that the benefits of growth reach all segments of society.

Inclusion Measures:

• Skill development and employment generation for youth
• Women’s economic participation enhancement
• Rural-urban development gap reduction
• Social security system strengthening
• Healthcare and education access improvement

Human Development Investment

Investment in human development, including education, healthcare, and skill development, has been crucial for sustaining long-term economic growth and competitiveness.

Human Capital Development:

• Education system modernization and expansion
• Healthcare infrastructure development
• Skill development program implementation
• Research and higher education investment
• Public health system strengthening

Conclusion: India’s Economic Resilience and Future Prospects

India’s explosive GDP growth rate of 7.8% in Q1 FY26 represents far more than a statistical achievement—it embodies the nation’s remarkable economic resilience and its ability to thrive despite facing unprecedented global challenges. This outstanding performance, the strongest in five quarters, demonstrates that India has successfully established itself as the world’s most dynamic major economy.

The comprehensive analysis of India’s economic performance reveals a multi-dimensional growth story driven by robust domestic demand, sectoral diversification, policy effectiveness, and structural transformation. The services sector’s outstanding 9.3% growth, manufacturing sector’s impressive 7.7% expansion, construction sector’s solid 7.6% performance, and agriculture sector’s meaningful 3.7% improvement collectively paint a picture of balanced and sustainable economic development.

India’s ability to achieve such remarkable growth while navigating global trade tensions, currency volatility, and international economic uncertainty underscores the fundamental strength of its economic foundations. The country’s success in maintaining strong domestic demand, attracting international investment, and implementing effective policy responses has positioned it as a beacon of economic dynamism in an otherwise challenging global environment.

The positive outlook from international institutions, including the IMF’s upward revision of India’s growth forecast to 6.4% and the maintenance of investment-grade credit ratings, validates the country’s economic management and provides confidence for sustained future growth. While challenges remain, including potential trade disputes, currency pressures, and the need for continued structural reforms, India’s demonstrated resilience and adaptive capacity suggest that the economy is well-positioned to continue its impressive growth trajectory.

As India moves forward, the focus on sustainability, inclusion, and innovation will be crucial for ensuring that economic growth translates into improved living standards for all citizens while maintaining environmental responsibility. The country’s commitment to digital transformation, infrastructure development, and human capital enhancement provides a solid foundation for long-term competitiveness and prosperity.

India’s economic success story serves as an inspiration for emerging markets worldwide and reinforces its position as a key driver of global economic growth. The nation’s journey from an agrarian economy to a diversified, technology-enabled, and globally competitive economy demonstrates the transformative power of sustained policy commitment, structural reforms, and entrepreneurial dynamism.

Call to Action: Engaging with India’s Growth Story

How do you envision India’s remarkable economic growth trajectory shaping global economic dynamics over the next decade? What sectors do you believe will be the primary drivers of India’s continued expansion? Share your insights, analysis, and predictions about India’s economic future and join the global conversation about one of the world’s most compelling growth stories.

Frequently Asked Questions (FAQs)

What was India’s GDP growth rate in Q1 FY26? India achieved an explosive GDP growth rate of 7.8% in Q1 FY26, marking the strongest performance in five consecutive quarters and significantly outpacing market expectations.

Which sectors contributed most significantly to India’s growth? The services sector led with 9.3% growth, followed by manufacturing at 7.7%, construction at 7.6%, and agriculture and allied activities at 3.7%. Each sector played a crucial role in driving overall economic expansion.

What are the primary risks that could affect India’s continued growth? Key risks include global trade tensions and tariff disputes, currency volatility and exchange rate pressures, potential investment slowdown due to global uncertainty, and inflationary pressures from rising commodity prices.

What is the growth forecast for India in FY26? Growth forecasts range from 6.3% to 6.5% depending on institutional projections, with the IMF projecting 6.4%, the UN estimating 6.3%, and the Reserve Bank of India maintaining its projection at 6.5%.

How does India’s growth compare to other major economies? India significantly outpaces other major economies, growing at nearly twice the rate of advanced economies like the United States (2.5-3.0%) and European nations (1-2%), while also exceeding China’s current growth rate of 5-6%.

What policy measures are supporting India’s economic growth? Key policy measures include infrastructure investment acceleration, Production Linked Incentive (PLI) schemes for manufacturing, digital transformation initiatives, financial inclusion programs, and targeted welfare schemes supporting rural and urban consumption.

Latest Economic and Business Updates

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Helpful Resources

• National Statistics Office – Q1 FY26 GDP Estimates

• International Monetary Fund – World Economic Outlook

• United Nations – World Economic Situation and Prospects Report

• Reserve Bank of India – Monetary Policy Statements

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