As India’s Gross Domestic Product (GDP) grew by a strong 7.8% in the April-June quarter of FY26, market expert Ajay Bagga said this was the best quarterly performance in five quarters.
The figure reflects a sharp improvement over last year’s 6.5% growth and came in well above the Reserve Bank of India’s (RBI) forecast of 6.5%.
“India’s gross domestic product (GDP) is up 7.8% in Q1 FY2026 (Apr-Jun 2025). The last year’s number was at 6.5%. RBI forecast for Q1 was at 6.5%. This is a huge outperformance to start the year,” Bagga wrote on X (formerly Twitter).
Nominal GDP expanded by 8.8% in the quarter, aided by relatively low inflation. Bagga pointed out that the robust growth was achieved “despite a war, global policy uncertainty, and FPI outflow pressures,” underscoring the economy’s resilience.
He also noted that while critics may dismiss GDP as a lagging indicator, the 7.8% print offers a significant boost to sentiment. “Silver lining, green shoots, best quarterly GDP number in five quarters… take your pick. The fastest-growing major economy crown stays,” Bagga remarked.
India’s Q1 FY26 numbers, released by the National Statistical Office (NSO), highlight the country’s strong economic momentum. With real GDP rising 7.8% and nominal GDP up 8.8% in April-June, India has not only outpaced its own past performance but also reinforced its standing as the world’s fastest-growing large economy.
Agriculture and Allied Sectors saw a positive turnaround, with real Gross Value Added (GVA) growth jumping to 3.7%, a notable improvement from the 1.5% growth in Q1 of the last fiscal year.The Secondary Sectors were a major growth engine, with both Manufacturing and Construction registering strong real growth rates of 7.7% and 7.6%, respectively. The Tertiary Sector (services) led the charge with a substantial growth rate of 9.3%, outpacing the 6.8% growth from the previous year’s quarter.