ECONOMY
Services, agriculture drive Q1 FY26 growth to five-quarter high of 7.8%
- IBJ Bureau
- Aug 30, 2025
The country’s GDP grew by 7.8 per cent in the first quarter of this financial year against an estimate of 6.5 per cent. The figure is also 1.3 percentage points higher than in the same timeframe last year.
The GDP had grown by 6.5 per cent in the April-June quarter of the last financial year, and the growth in the same three-month period in 2025-2026 represents the fastest rise in five quarters. The previous highest GDP growth was 8.4 per cent in the January-March quarter of 2024.
China’s growth in April-June this year was 5.2 per cent, and India’s GDP figure means that it remains the fastest-growing major economy.
The growth was driven by services and agricultural sectors, which saw a rise of 9.3 per cent against 6.8 per cent and 3.7 per cent against 1.5 per cent respectively in April-June last year, according to the National Statistical Office (NSO) data.
Construction sector’s growth slowed to 7.6 per cent this year against 10.1 per cent last year.
Earlier this month, the Reserve Bank of India had projected real GDP growth for 2025-26 at 6.5 per cent with Q1 at 6.5 per cent, Q2 at 6.7 per cent, Q3 at 6.6 per cent and Q4 at 6.3 per cent.
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