India’s economy grows 7.8% in June quarter, beating expectations

India’s economy grew by 7.8% in the three months to the end of June, beating expectations of 7.1%, according to India’s Ministry of Statistics and Programme Implementation.

The growth was supported by strong performances in the financial, real estate, information technology and professional services sectors, Caliber.Az reports via foreign media.

The figure was unchanged from the previous quarter and came despite weaker growth in agriculture and related sectors.

Manufacturing and services activity improved sharply during the quarter, while consumer demand remained robust, according to Barclays India chief economist Aastha Gudwani.

She said geopolitical tensions, including the Iran war, had not affected India’s economic growth as much as had been feared.

The stronger-than-expected figures come after the Reserve Bank of India (RBI) warned earlier this month that economic growth was likely to slow during the financial year ending in March 2027.

The central bank had forecast growth of 7% for the June quarter and 6.7% for the full financial year.

The RBI said uncertainty in the global economy, higher energy prices and continued supply-chain pressures could weigh on domestic activity.

It also warned that El Niño conditions could result in a weaker and uneven monsoon, creating risks for agriculture and rural demand.

India’s inflation rate rose for the ninth consecutive month to 4.45% in July, reflecting the impact of higher energy prices. Despite this, the RBI left interest rates unchanged at its August policy meeting.

By Aghakazim Guliyev