India’s Q1 GDP Growth Surges to 7.8%, Highest in 5 Quarters

India's economy has shown bold growth in the April–June quarter of 2024-2025, expanding at 7.8%, the fastest in five quarters. This strong growth beats the expectations of many economists, who had predicted a more moderate momentum. In the same year, the GDP growth was at 6.5%.

According to the latest data from the National Statistical Office (NSO), India's GDP growth for the June quarter of 2024 marks a sharp exponential improvement. The last time India posted such strong growth was in the January–March quarter of 2024, when GDP grew by 8.4%.

Sector-wise Performance

Strong performances across multiple sectors have shown India's growth this quarter. Here is how:

• Agriculture: The agriculture sector saw a market uptick, growing by 3.7%, compared to just 1.5% in the same period last year. Good monsoons and favourable weather conditions have been key to this agricultural recovery.
• Manufacturing & Construction: Both manufacturing and construction sectors have also recorded solid growth, as demand for industrial products and infrastructure development has increased. This has resulted in higher job creation and better performance in production-based industries.
• Services: The services sector, including information technology and financial services, has significantly contributed to the economy's recovery. The industry has benefited from the digital transformation and global demand for Indian IT services.

Also Read: Rajan Proposes Oil Windfall Tax to Shield SMEs from US Tariffs

Why Is This Growth Crucial?

The 7.8% growth rate shows India's economy is strong for all the global challenges, such as inflation and trade disruptions. Economists have been honest about India's growth potential, with many predicting that the country could become the world's fastest-growing major economy in the next few years.

Experts say India's strong agricultural, construction and manufacturing performance reflects an ongoing recovery from the pandemic's economic impact. These sectors have bounced back faster than expected, helping the economy to boost the momentum.

Political Reaction: Rahul Gandhi's Criticism and Economic Reality

Politicians Congress leader Rahul Gandhi had recently criticized the government's handling of the economy, referring to India’s economy as "dead."

However, these new figures clearly contradict such claims, proving that India's economy is far from boom. The expanding growth rate proves the country's economic flexibility and ability to recover even after major global challenges.

Don't Miss: Reliance AGM 2025: Russian Oil Deals Steal the Spotlight

Is India's Economy Dead: Will the Growth Continue?

Looking ahead, experts are carefully optimistic. The Reserve Bank of India (RBI) has maintained its bearing on growth, focusing on inflation control and financial stability.

The government's ongoing push for structural reforms in manufacturing, digitisation and sustainable development is expected to contribute to continued economic recovery.

The government's stimulus measures, aimed at boosting infrastructure development and attracting foreign investment, will likely support growth in the coming quarters.

India's economy has shown power to bouncing back with a strong performance. As per experts this growth is not just a flash in the pan but a sign of India's ongoing economic recovery, solidifying its position as a strong global contender.

This 7.8% growth in the June quarter signals that India's economy is on a solid growth trajectory, putting any claims of stagnation to rest. It is a testament to the hard work across sectors and the strategic steps taken by the government to ensure the recovery continues.