New Delhi, August 29 (FrontPostPlus) – India’s economy delivered a strong surprise in the April–June quarter of FY26, recording 7.8% GDP growth, its highest in five quarters, according to data released by the National Statistics Office (NSO) on Friday.
The figure not only surpassed economists’ expectations but also underscored the resilience of the Indian economy at a time when global trade tensions are rising, particularly with the looming impact of U.S. tariffs.
What Drove the Growth?
Several key sectors fueled this surge:
Government capital expenditure – Strong public investment in infrastructure boosted overall activity. Construction and agriculture – Both sectors recorded robust performance, adding momentum to domestic output. Aviation and cargo traffic – Increased logistics and trade flows contributed to expansion. GST collections – Higher tax revenues indicated stronger consumer demand.
Economists’ Reactions
Experts had projected a lower growth rate given weak global conditions, but India’s domestic demand proved resilient. “This quarter’s growth shows India’s capacity to withstand external pressures,” said an economist quoted in The Economic Times.
However, concerns remain. Global risks, including U.S. tariffs on Indian goods and continuing uncertainties in oil markets, could weigh on growth in the coming quarters.
Why It Matters
At 7.8%, India remains one of the fastest-growing major economies in the world. But sustaining this momentum will depend on whether domestic demand can cushion external shocks. The government is expected to lean on capital spending and reforms to sustain growth as trade tensions with the U.S. intensify.
