Indian Economy's Q1 Growth and Outlook

Posted on August 30th, 2025 in Current Affairs
Tags: Daily current affairs

Indian Economy’s Q1 Growth and Outlook

• Indian economy grew at 7.8% in Q1, surpassing analysts’ expectations by a significant margin.

• Value added, which excludes net product taxes, also grew at 7.6%, supported by the services sector.

• Agriculture grew at 3.7%, with kharif cultivation increasing due to timely and well-distributed monsoon rains.

• Manufacturing sector grew at 7.7%, and services sectors grew at a rapid pace.

• Private consumption and investment activity also performed well, as did government spending.

• Capital spending rose by 52%, while 24 states’ spending rose by 23%.

• Bank of Baroda economists reported net sales of 2,545 companies grew by 4.9% in Q1.

• Economic growth slowed down to 8.8% from 9.7% in Q1 last year, indicating a low deflator.

• The impact of the 50% tariff rate on India’s exports to the US will affect employment, income, and consumption.

• A low interest rate regime and rationalisation of tax rates under GST could stimulate household demand, but some consumption may be deferred.

India Q1 Growth Outlook is important topic for Civil service exam (WBCS).

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