Unconcerned with Trump tension, the Indian economy boomed, made a tremendous jump of 7.7 percent

India's Q1 FY26 GDP: It was estimated that the GDP could be 6.7 percent during the first quarter. If we talk about last year, the GDP growth was 6.5 percent. In the fourth quarter of the last financial year, this GDP growth had increased to 7.4 percent.

India's GDP Growth: Despite the ongoing tariff tension in the country, India has performed brilliantly on the domestic front. During the current financial year, the country's GDP has grown at a rate of 7.8 percent, which is much more than expected. It was estimated that the GDP could be 6.7 percent during the first quarter. If we talk about last year, the GDP growth was 6.5 percent. In the fourth quarter of the last financial year, this GDP growth had increased to 7.4 percent.

Why did such a boom come?

It is being said that behind this great start in the Indian economy is the tremendous increase in government spending and the boom in the service sector. According to government data released on Friday, GDP (gross domestic product) growth has increased mainly due to the good performance of the agricultural sector. India remains the fastest growing major economy, as China's GDP growth was 5.2 percent in April-June.

Manufacturing and agriculture sectors in pace

According to the data, the highest GDP growth before this was 8.4 percent in January-March of 2024. According to the data of the National Statistical Office (NSO), the agriculture sector registered a growth of 3.7 percent, which was 1.5 percent in the April-June quarter of 2024-25. The growth rate of the manufacturing sector increased marginally to 7.7 percent in the first quarter of the financial year 2025-26, whereas it was 7.6 percent in the same quarter a year ago.

Obviously, the way Trump has imposed a huge tariff of 50 percent on India and this has created a new challenge, in such a situation, these figures will definitely give some relief to the government on the economic front. Besides, now we will have to take immediate steps to counter the tariffs on other options.