India’s GDP grows 7.8 pc in Q1 FY26, services and manufacturing sector lead economic momentum

New Delhi, Aug 29 (UNI) India’s economy recorded a strong start to the fiscal year with Gross Domestic Product (GDP) growing 7.8 percent in the April–June quarter (Q1) of 2025-26, the National Statistics Office (NSO) said on Friday.

The latest numbers highlight the strength of the services sector, which posted an impressive 9.3 percent growth, becoming the key driver of economic activity.

The manufacturing and construction sectors also sustained momentum with growth rates above 7.5 percent, reflecting resilient industrial output and infrastructure push.

Agriculture and allied activities grew by 3.7 percent, showing an improvement over last year, while mining and utilities registered subdued or negative growth.

On the demand side, government expenditure rebounded sharply, offering support to the economy, while private consumption and investments grew steadily, though at a slightly slower pace compared to last year.

A National Statistics Office (NSO) is the primary government agency responsible for collecting, analyzing, and disseminating official statistics within the country.

 

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