India's Economy Surges Ahead: Outpacing Forecasts Amid Global Challenges

India's economy surged ahead in the first quarter of 2025, registering a growth of 7.4%, surpassing the projected 6.7% forecast, as per official data released on Friday. This robust performance, primarily driven by construction and manufacturing, marks the fastest GDP increase since early 2024.

V. Anantha Nageswaran, India's chief economic adviser, highlighted India's standout growth amid a global economic slowdown, noting that it outpaced other major economies like China. The Reserve Bank of India maintains a positive outlook, expecting a 6.5% growth for the fiscal year, potentially matching Japan's economy size according to IMF projections.

Despite the optimistic numbers, India faces headwinds like tariff uncertainties from the U.S., which may hinder growth. However, favorable conditions such as a strong monsoon, expected tax cuts, and interest rate reductions are set to sustain domestic demand and mitigate the impact of global challenges.

(With inputs from agencies.)