India's Economic Boom: Q1 FY26 GDP Soars to 7.8%

India's real GDP experienced a robust growth rate of 7.8% in the first quarter of FY26, highlighting an upswing in the country's economic vitality. Sources from the Finance Ministry revealed that this growth was buoyed by solid macroeconomic fundamentals, spearheaded by manufacturing, construction, and services sectors.

Private Final Consumption Expenditure (PFCE) expanded by 7.0%, reaching a record share of 60.3% in GDP, the highest in 15 years. Simultaneously, Gross Fixed Capital Formation soared by 7.8%, boosted by significant government capital expenditure. Official data revealed a healthy nominal GDP growth rate of 8.8% for the April-June quarter.

The Agriculture sector showed commendable resilience with a Real GVA growth of 3.7%, while Manufacturing and Construction sectors witnessed growth rates above 7.5%. Meanwhile, moderated growth was observed in Mining and Utilities sectors. Looking forward, economic indicators suggest sustained momentum, with strategic reforms and trade agreements expected to further enhance India's economic trajectory.

(With inputs from agencies.)