India’s economy grew by 7.8 percent in the April–June quarter of FY26, marking its fastest expansion in five quarters and surpassing the Reserve Bank of India’s projection of 6.5 percent. According to data released by the National Statistics Office, the growth reflects strong public expenditure, improving rural demand, and a resilient services sector, despite global headwinds.
Industry leaders from Laghu Udyog Bharati attributed the surge to a 52 percent rise in government-led capital expenditure and emphasized that reforms such as GST rationalization, potential interest rate cuts, and favorable monsoon conditions could further support consumption. National President Ghanshyam Ojha stated that the 7.8 percent growth confirms the strength of domestic demand and public investment.
State Vice President Mahavir Chopra highlighted balanced growth across all three core sectors. The primary sector grew by 2.8 percent, the secondary sector by 7 percent, and the tertiary sector by 9.3 percent. Agriculture recorded 3.7 percent growth, more than double the 1.5 percent seen in the same period last year. Manufacturing expanded by 7.7 percent, slightly higher than last year’s 7.6 percent, while construction activity remained robust.
The tertiary sector led the performance, with trade, hotels, transport, communication, and broadcasting services growing by 8.6 percent. Financial, real estate, and professional services rose by 9.5 percent, and public administration and defence increased by 9.8 percent, up from 9 percent a year ago.
Exports of goods and services rose by 5.9 percent, supported by sustained demand from markets such as the United States. Pankaj Bhandari from the Jodhpur chapter of Laghu Udyog Bharati noted that India’s growth momentum is being powered by government expenditure, rural demand recovery, and the dynamism of the services sector. He projected continued strength in construction and agriculture in the coming quarters.
The latest GDP figures underscore India’s economic resilience and the effectiveness of policy measures aimed at stimulating growth across sectors.
