India's strong services activity has helped GDP growth comfortably beat expectations for the second quarter in a row, rising to an impressive high of 7.8 per cent for April-June 2025.
He backed his argument by stating that the measures taken by the government, such as direct tax cuts, forthcoming GST tax structure reforms, and the employment-linked incentives, among others, are supportive of the overall economy.
Department of Economic Affairs (DEA) Secretary Anuradha Thakur on Saturday expressed confidence that India will meet its fiscal deficit target of 4.4 per cent for 2025-26, despite the first quarter showing a wider deficit than last year.
Robust Q1 GDP growth underlines the basic resilience and the strengthening of the momentum in the economy, which is anchored in strong macro-economic fundamentals, a senior government official said on Saturday.
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.
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.
Economic activity in India held up, with improving kharif agricultural season prospects, continuation of strong momentum in the services sector and modest growth in industrial activity, said RBI in its monthly bulletin.
Despite an uncertain and challenging global economic backdrop, the Indian economy remains a key driver of global growth -- underpinned by sound macroeconomic fundamentals and prudent macroeconomic policies, RBI said in its latest Financial Stability Report.
The positive trajectory in the Indian economy appears to be continuing in 2025-26, with initial high-frequency indicators suggesting that economic activity has remained resilient, according to the Ministry of Finance's monthly report, released on Friday.