Economy grew 7.8% in Q1 despite Iran crisis and El Nino conditions
India's economy grew by 7.8% in the first quarter of the financial year, driven by strong manufacturing and service sectors. This growth successfully offset challenges posed by the Iran crisis and adverse El Nino weather conditions.
Why it matters
The data demonstrates the resilience of the Indian economy against global geopolitical tensions and climate-related risks, signaling continued stability for investors.
NEW DELHI: The Indian economy grew 7.8% during April-June quarter (Q1) of the current financial year as strong growth sustained in the manufacturing and services sector along with robust domestic demand, offsetting the anticipated adverse impact of the conflict in West Asia and El Nino conditions. Exports and investment also gained momentum during the quarter.Official gross domestic product (GDP) data released by NSO on Monday showed that though growth moderated from the upwardly 8.6% recorded in the March quarter (7.8% estimated earlier), it remained well above the 6.9% recorded during April-June 2025. "The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA govt, together with agile management of the economy, are bearing results.
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