The Reserve Bank of India (RBI) on Wednesday said that economic activity has remained resilient, with real GDP growth surprising on the upside at 7.8 per cent and gross value added (GVA) at 7.6 per cent in Q1 of 2025-26. High-frequency indicators suggest that domestic economic momentum is expected to continue in Q2.

RBI Governor Sanjay Malhotra said that an above-normal monsoon, good progress of kharif sowing, and adequate reservoir levels are likely to support agriculture and rural demand. Buoyancy in the services sector, steady employment conditions, and rationalisation of GST are expected to further strengthen domestic demand. Rising capacity utilisation, supportive financial conditions, and improving domestic demand are also expected to sustain fixed investment.

However, the Governor

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