Q1 GDP figures reflect India’s resilience, and the outlook remains positive: Minister of Economic Affairs
A senior government official said Saturday that strong Q1 GDP growth highlights fundamental resilience in the economy and strengthening economic momentum based on strong macroeconomic fundamentals.
Anuradha Thakur, secretary of the Ministry of Economic Affairs, told ANI that there was overall growth in the supply side and that growth in multiple sectors was strong.
India’s true GDP is estimated to grow by 7.8% in the April-June quarter of fiscal 2025-26, with growth exceeding 6.5% in the same quarter of the previous fiscal year, according to official data released on Friday. India’s nominal GDP grew by 8.8% in the April-June quarter.
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“In terms of supply, we have seen a full range of growth. There has been strong growth in the activities and agriculture in manufacturing, construction…engineering. Rabies harvest and Kharif’s performance has been too much since last quarter…we have a good buffer pool. We have good rainfall,” Anuradha Thakur said. ”
In terms of demand, the main drivers have always been domestic. She explained that net exports did not make a significant contribution to India’s demand.
When asked about the possible impact of the U.S. government on 50% tariffs, she said the Indian economy is not highly dependent on exports.
“There may be some recent disruption, but over the course of the year … we haven’t changed our growth figures yet,” she said.
In the 2024-25 economic survey in Parliament on January 31, real GDP growth is expected to be 6.3% to 6.8% in 2025-26. Since then, GDP estimates have not been revised in 2025-26.
The secretary said that looking forward, the outlook remains positive and the proven momentum will remain stable in the first quarter.
“Agriculture means…the indicators we see in high frequency also give us confidence that consumption will stick to it,” she said.
India’s fiscal deficit from April to July has widened to 29.9% of the 2025-26 target, compared with 17.2% in the same period last year.
Asked about concerns about the landslide, she replied that monthly or quarterly fiscal deficit figures are not necessarily indicators for the whole year.
Because, on a monthly or quarterly basis, there may be a temporary mismatch between non-DEBT receipts and spending traffic. Throughout the year numbers, we still have confidence that we can stick to the fiscal deficit targets we set for ourselves and we will be able to sustain that. ”
