India’s Q1 GDP development at 7.8% reveals stability, says CEA; calls tariffs a possibility for reforms

India's Chief Financial Advisor (CEA) stated the 7.8% GDP development within the April–June quarter of FY26 displays strengthening development momentum and macro-economic stability, with consumption and funding persevering with to anchor the economic system. His remarks adopted the discharge of official information displaying India's quickest quarterly growth in 5 quarters, even because the current US tariff hike clouds the export outlook.

The CEA stated the tariff motion ought to be seen as “a possibility to maneuver ahead in home reforms, deregulation and discover different export markets.”

“We anticipate GDP development to stay throughout the focused band of 6.3-6.8%. In fact, there are some draw back dangers,” stated CEA.
Additionally Learn: India's Q1 GDP springs large shock with five-quarter excessive development of seven.8% earlier than US tariff blow

Based on him, non-public closing consumption expenditure's share in GDP through the quarter was the very best in 15 years. City demand is selecting up with FMCG gross sales and UPI transactions displaying power, whereas rural consumption stays resilient—FMCG gross sales quantity in rural areas rose 8.4% within the June quarter.

On funding, the CEA famous that capital formation gained momentum. The Centre's capital expenditure grew 30.1% in Q1 in contrast with the three-year common, whereas capital items output stayed sturdy. Gross mounted capital formation rose 7.8% at fixed costs, underscoring investment-led development.
The CEA highlighted that kharif crop sowing is monitoring on the greater finish of historic traits, aiding farm output. Agriculture grew 3.7% in Q1 in comparison with 1.5% a 12 months earlier. Trade maintained regular development, whereas the providers sector remained the important thing development driver with a 9.3% growth.
He additionally stated PMI ranges for each manufacturing and providers are above pre-Covid benchmarks and better than the final two fiscal years. Commerce exercise stays agency, with core exports rising quicker than pre-Covid ranges. Inflationary pressures have eased, and the labour market is displaying constructive indicators.
India's GDP grows at 7.8% in Q1
The Nationwide Statistics Workplace (NSO) estimated actual GDP at Rs 47.89 lakh crore in Q1 FY26, up from Rs 44.42 lakh crore a 12 months earlier. Nominal GDP rose 8.8% to Rs 86.05 lakh crore. Whereas mining contracted 3.1% and utilities development moderated to 0.5%, agriculture and providers lifted general development.

India continues to be the fastest-growing main economic system, forward of China's 5.2% development in the identical quarter. Economists, nonetheless, have cautioned that world commerce dangers and the upper US tariffs might weigh on exports within the months forward.