India’s GDP grew 7.8% in Q1 FY26, led by agriculture, trade, hospitality, finance, and real estate, outpacing China’s 5.2% growth, remaining the fastest-growing major economy
NEW DELHI
Chief Economic Advisor V. Anantha Nageswaran on Friday expressed confidence that India’s economy will grow beyond 6.8 percent in the current financial year, supported by stronger consumption following GST rate cuts and income tax relief.
Speaking at CNBC-TV18’s Global Leadership Summit 2025, Nageswaran said the earlier growth projection of 6.3 to 6.8 percent in the Economic Survey could now move higher. “I am comfortable saying it will be north of 6.8 percent. Whether it reaches 7 percent depends on second-quarter results,” he noted.
India registered a 7.8 percent GDP growth in the first quarter of FY26, driven by a strong farm sector and robust performance in trade, hospitality, finance, and real estate. The country continues to be the world’s fastest-growing major economy, with China reporting 5.2 percent growth in the same period.
The highest growth in recent quarters was 8.4 percent recorded between January and March 2024. Nageswaran said that the pace could further accelerate if the bilateral trade agreement (BTA) between India and the United States is finalized soon.
“If there’s a resolution on the trade front, it could push forecasts even higher,” he added. However, the U.S. has imposed a 50 percent tariff on Indian goods since August 27, which includes a 25 percent penalty for crude oil imports from Russia.
The Trump administration’s August 7 decision to maintain steep tariffs has impacted trade, but Nageswaran remains optimistic that ongoing talks could soon ease trade tensions and strengthen growth prospects.
