India’s Economy soars with 7.8% GDP growth in Q1, fastest in five quarters

The main reason behind this better growth rate is the strong performance of the agriculture sector, which registered a growth of 3.7% this quarter, while the rate was 1.5% last year. This figure is before the high tariffs imposed on India by the US.

New Delhi: India's economy has strengthened as GDP grew by 7.8% in the first quarter, the fastest in the last five quarters. According to the government, this growth in the June 2025 quarter is better than the 6.5% of the same quarter last year, while the rate was 7.4% in the previous quarter. Despite the slow pace of the industrial sector, this growth is higher than the RBI's estimate of 6.5%. The RBI had projected growth rates of 6.5%, 6.7%, 6.6% and 6.3% respectively for the four quarters of the current financial year.

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Reason Behind Growth Rate

The main reason behind this better growth rate is the strong performance of the agriculture sector, which registered a growth of 3.7% this quarter, while the rate was 1.5% last year. This figure is before the high tariffs imposed on India by the US. The government believes that India's economy will grow strongly in the financial year, although the global economic situation and the monsoon situation are also being monitored.

India's GDP growth beats expectations, rising 7.8% in the first quarter. Strong economic performance signals positive momentum ahead. #IndiaGDP #economicgrowth #IndiaEconomy pic.twitter.com/eODDWPtQhr

— Dynamite News (@DynamiteNews_) August 29, 2025

China's GDP Growth

India has once again maintained its position as the world's fastest growing large economy. China's GDP growth was 5.2% during the same period. The manufacturing sector has also improved marginally, growing at 7.7% this quarter, slightly better than last year's 7.6%. India's GDP growth was recorded at the highest at 8.4% in the January-March 2024 quarter.

#indiagdp #EconomicGrowth #GDPSurge pic.twitter.com/eWa08ydBYD

— Dynamite News (@DynamiteNews_) August 29, 2025

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This growth is much higher than the Reserve Bank of India's estimate, indicating economic strength. However, the impact of US tariffs and global uncertainties will also have to be taken into account going forward.