India's Economy Surges Ahead of Global Uncertainty

India's economy demonstrated robust growth, expanding by 7.8% in the April-June quarter, according to government data. This marks the fastest pace in five quarters, fueled particularly by the agricultural sector's gains and the robust performance of services like trade, hotels, and real estate.

The impressive performance positions India as the world's fastest-growing major economy, surpassing China's 5.2% growth in the same period. However, potential US tariffs pose a risk to exports such as textiles, which could impact future growth figures.

While sectors like manufacturing reported marginal growth at 7.7% compared to the previous year, the tertiary sector saw substantial gains. Economists remain cautious about the outlook due to potential hits to exports and advised maintaining GDP growth forecasts conservatively at 6.0% for FY2026.

(With inputs from agencies.)