India’s economy grew by 7.8% in the first quarter of the 2025–26 financial year (April–June). This is the fastest growth in the last five quarters, as per the latest government data.

Better Than Expected

This growth is higher than the 7.4% in January–March and 6.5% in April–June last year. The RBI had expected only 6.5% growth. Most experts thought it would be around 7%, so this result was a pleasant surprise.

India Still Growing the Fastest

India is still the fastest-growing big economy in the world. This is happening even when the world is facing problems. For example, from August 27, the US increased tariffs to 50% on Indian goods. Even with this, India’s growth stayed strong.

Services Sector Helped the Most

The services sector grew the most. It rose by 9.3%, the highest in two years. Key areas like trade, transport, hotels, communication, and public services did very well:

• Trade, Transport, Hotels, Communication: 8.6%
• Finance, Real Estate, Professional Services: 9.5%
• Public Services (like Defence, Admin): 9.8%

GVA Shows Real Economic Activity

The Gross Value Added (GVA) grew by 7.6%, the highest in six quarters. GVA shows the actual work done in the economy. It removes the effect of taxes and subsidies from GDP. Net taxes also went up by 10.3% compared to last year.