India’s GDP Growth Quickens to Five-Quarter High of 7.8%

• India’s economic growth rate in Q1 of the current financial year reached a five-quarter high of 7.8%, driven by strong performances by manufacturing, construction, and services sectors.

• The growth rate was higher than the 6.5% predicted by the Reserve Bank of India as recently as August 6.

• The government aims to ease concerns about growth slowing due to the 50% tariffs imposed by the U.S. on its imports from India.

• The Chief Economic Adviser (CEA) V. Anantha Nageswaran predicts the momentum will continue, despite some impact on domestic spending due to uncertainties in the export sectors.

• The CEA also expresses confidence that the temporary dip in consumer demand in the run-up to the GST Council meeting will reverse itself well before the festival season.

• The services sector also propelled the GDP growth, with the Public Administration, Defence and Other Services sector seeing a three-year high of 9.8%.

India GDP Growth 2025 is important topic for Civil service exam (WBCS).

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