India's economy grows 7.8% in Q1 2025-26

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), has released the Quarterly Estimates of Gross Domestic Product (GDP) for the April-June Quarter of financial year 2025-26.

India's nominal GDP grew at an 8.8 per cent rate during the April-June quarter.

The Agriculture and Allied Sector has observed the Real GVA (gross value addition) growth rate of 3.7 per cent, as compared to the growth rate of 1.5 per cent registered in Q1 of the last financial year. Secondary Sectors, prominently Manufacturing (7.7 per cent) and Construction (7.6 per cent) sector have registered above 7.5 per cent growth rate at Constant Prices in this quarter. Mining and Quarrying (-3.1 per cent) and Electricity, Gas, Water Supply and Other Utility Services Sector (0.5 per cent) have seen a moderated real growth rate during Q1 of 2025-26.

In 2024-25, the Indian economy grew by 6.5 per cent in real terms. The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25.

In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy.

According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.

Earlier this year, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself.

To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted.

India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the progress in terms of size of economy. India was placed 11th in 2013-14 and is now the fourth-largest economy. India has surpassed many countries in terms of economic size over the past decade and needs to continue making progress in terms of per capita income.

In 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey. Today, India is one of the fastest-growing major economies. (ANI)