India's GDP Growth Reaches 7.8% in Q1 FY26, Solidifying Economic Progress

India's economy is on an upward trajectory, with a projected real GDP growth of 7.8% for the April-June quarter of FY26, surpassing last year's 6.5%. The growth is driven by strong performances in agriculture, manufacturing, and construction sectors. Despite some declines in mining and utility services, India's economic landscape continues to evolve positively. The World Bank emphasizes the need for sustained growth to achieve developed nation status by 2047. This article explores the factors contributing to India's economic success and its journey from the 'Fragile 5' to a leading global economy.

By Narendra Chaudhary Aug 29, 2025, 18:03 IST

India's Economic Growth Overview

Recent official data indicates that India's real GDP is projected to expand by 7.8% during the April-June quarter of the fiscal year 2025-26, a notable increase from the 6.5% growth recorded in the same period last year. The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) has published the Quarterly Estimates of Gross Domestic Product (GDP) for this timeframe.

During the April-June quarter, India's nominal GDP experienced an 8.8% growth rate. The Agriculture and Allied Sector reported a real GVA (gross value addition) growth of 3.7%, significantly higher than the 1.5% growth seen in the first quarter of the previous fiscal year. The Secondary Sectors, particularly Manufacturing and Construction, achieved growth rates of 7.7% and 7.6%, respectively, at constant prices.

However, the Mining and Quarrying sector faced a decline of 3.1%, while the Electricity, Gas, Water Supply, and Other Utility Services sector saw a modest growth of 0.5% during the first quarter of 2025-26. In the previous fiscal year 2024-25, the Indian economy grew by 6.5% in real terms, aligning with the Reserve Bank of India's growth projection for that year. Notably, in 2023-24, India's GDP surged by 9.2%, maintaining its status as the fastest-growing major economy.

According to the data, the economy recorded growth rates of 8.7% and 7.2% in the fiscal years 2021-22 and 2022-23, respectively. Earlier this year, the World Bank highlighted that India must achieve an average growth rate of 7.8% over the next 22 years to fulfill its goal of becoming a developed nation by 2047. The World Bank emphasized that ambitious reforms are essential to meet this target.

To realize the vision of 'Viksit Bharat' by 2047, India needs to sustain an average growth rate of around 8% at constant prices for a decade or two, as stated in the Economic Survey document for 2024-25 presented on January 31.

India has made significant strides in economic growth, moving from being the 11th largest economy in 2013-14 to currently being the fourth largest. Over the past decade, India has surpassed several countries in economic size and must continue to improve its per capita income.

In 2013, India was categorized among the 'Fragile 5' economies, a term coined by a Morgan Stanley analyst to describe five emerging markets, including Brazil, Indonesia, South Africa, and Turkey, that were struggling economically. Today, India stands as one of the fastest-growing major economies.