India's economy grew at a faster than-expected annual rate of 7.8% in the quarter to the end of June, boosted by the manufacturing, construction and service sectors.

Annual manufacturing and services growth were at 7.7% and 9.3%, respectively, with the construction sector expanding by 7.6%.

While the overall gross domestic product print for the first quarter of the fiscal year 2026 came in higher than the 6.7% expansion forecast by economists in a Reuters poll, economists pointed to signs of a slowdown.

India's nominal GDP — which does not account for inflation or deflation — fell to 8.8% over April-June, compared to 10.8% in the previous quarter.

"Nominal GDP growth is lower than previous quarters but because the deflator is so soft that the real GDP looks extremely strong," says Anub

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