India's economy is expected to expand by around 6.5 per cent in FY26, reflecting steady domestic momentum, said the Bank of Baroda, noting that the escalating concerns over ongoing tariff negotiations pose a downside risk, with potential adverse effects on the external sector.
Observers and experts of the Indian economy have hailed the first-quarter GDP growth figures, saying that the numbers are a strong sign of economic resilience.
Bharatiya Janata Party (BJP) National Spokesperson Dr. Syed Zafar Islam on Friday hailed the latest GDP figures, terming them a "slap on the face of the Opposition" and a testament to the robust growth of India's economy under Prime Minister Narendra Modi's leadership.
India's real GDP grew by 7.8% in Q1 FY26, reflecting strengthening momentum in the economy, anchored by strong macroeconomic fundamentals, sources in the Finance Ministry said on Friday, noting that the High Frequency Indicators had been green-signalling the potentially higher numbers.
Industry chambers on Friday said that GDP growth of 7.8% for Q1 FY26 is a testament to the Indian economy's resilience, signals strong momentum at the start of the fiscal year and will help boost business sentiments when the country is facing global headwinds
Chief Economic Adviser V Anantha Nageswaran on Friday said India's domestic consumption growth can offset the US tariff-related losses, which is why the GDP estimates for the year 2025-26 haven't been revised downwards.
India's real GDP has been estimated to grow by 7.8 per cent in the April-June quarter of the financial year 2025-26 over the growth rate of 6.5 per cent in the same quarter of the previous fiscal, official data showed Friday.
India's GDP for the first quarter of financial year 2026 is expected to clock a growth rate of 7 per cent, up from 6.5 per cent in the first quarter of Financial year 2025 (Q1 FY25), according to a report by Union Bank of India (UBI).
The Commerce Ministry on Thursday said the recent imposition of 50 per cent tariffs by the United States will have a short-term impact on India's exports, particularly in sectors such as textiles, chemicals, and machinery. However, it asserted that the long-term effect on overall trade an
Among the largest economies, India stands out with a median age of 28.8 years in 2025, the second-highest savings rate, and a government debt-to-GDP ratio projected to decline from 81.3% in 2024 to 75.8% by 2030, unlike its peers, where debt levels are rising.
The recent move by the United States to impose steep tariffs on Indian goods is expected to weigh on the U.S. economy, pushing up inflationary pressures and impacting growth, according to a report by the State Bank of India (SBI).