India’s Economy Powers Ahead: 7.8% Q1 Growth & A New Growth Narrative
India’s economy is roaring back into global spotlight. In Q1 of FY 2025-26, real GDP grew by 7.8 % , beating most analysts’ expectations and reasserting India’s position as one of the fastest-growing large economies. wrote by PT Key Drivers & Trends Strong domestic demand across sectors—services, manufacturing, construction—all showing healthy expansion. Industrial growth accelerating : India’s industrial production rose by 4.0 % in August 2025. Exports and manufacturing maintained momentum. From April to August 2025, merchandise exports rose ~2.5 % YoY. Policy tailwinds : Tax reforms , GST tweaks , infrastructure pushes , and prudent fiscal-monetary management are underpinning growth. Outlook & Risks The OECD recently upgraded India’s 2025 growth projection to 6.7 % citing strong domestic demand and reforms. The IMF has also revised its forecast to 6.4 % . Chief Economic Adviser expects actual growth could touch 7 % , with a fiscal ...