India’s economy has surpassed projections, recording a GDP growth rate of 7.8% in the first quarter (April–June) of FY 2025-26, according to the Ministry of Statistics. This is higher than the Reserve Bank of India’s estimate of 6.5%.
With this, India continues to hold its position as the world’s fastest-growing major economy. However, the recent announcement by US President Trump imposing a 50% import tariff on Indian goods is expected to impact growth in the July–September quarter.
Experts predict that GDP growth could drop by around 1% due to the tariff’s effect. Meanwhile, the Indian government is working to counter the impact by introducing GST concessions and export support packages.
