The Report analyses Q1 GDP data and way forward. India’s economy sprinted into FY26 with Q1 GDP growth of 7.8%, beating expectations on the back of strong consumption, government capex, and buoyant construction. Services and manufacturing delivered healthy gains, while agriculture held up at 3.7%. External balances remain cushioned by ample forex reserves despite tariff risks, though foreign flows stay muted. Policy tailwinds from tax breaks, GST rationalisation, and RBI’s liquidity stance should keep India the fastest-growing major economy this year, even as global headwinds and weak private capex are likely to cap full-year growth near 6.2% with nominal GDP at ~8.5%.
