India Economy Grows 7.8 Percent in First Quarter

The Ministry of Statistics and Programme Implementation of India reported that the economy grew by 7.8 percent in the April-June quarter. This figure exceeded the Reserve Bank of India's 7 percent forecast and the median economist estimate of 7.3 percent, matching the expansion rate of the previous quarter.

Government officials view the performance as evidence of resilience against external shocks, including the war in Iran and the closure of the Strait of Hormuz, both of which threatened critical oil shipments. While India remains the fastest-growing major economy globally, the current pace falls short of the 9.25 percent annual growth the government deems necessary to achieve developed-nation status by 2047.

The growth data may impact future monetary policy. The Reserve Bank of India held its benchmark interest rate at 5.25 percent in August, though it has signaled that rate hikes could occur later this year if inflation rises.