India's Q1 GDP Growth Rate Has Come As A Positive Surprise: Rajiv Memani

(MENAFN- IANS) New Delhi, Aug 30 (IANS) The Indian Gross Domestic Product (GDP) growth number for the first quarter of the current fiscal at 7.8 per cent has come as a positive surprise, demonstrating the resilience of the Indian economy, Rajiv Memani, the President of Confederation of Indian Industry (CII), said on Saturday.

"The Indian GDP growth number of 7.8 per cent has come as a positive surprise, a very positive surprise. No one was expecting this growth number," Memani told IANS

The CII president said that not only will India be the fastest-growing economy in the world, but the gap between India and any other large economy will be very, very significant.

"So this has come as very, very positive news for India, and India will stand out in the global economic order and everyone will take notice of that," he said.

The Q1 GDP growth data demonstrates the resilience of the Indian economy, and it also showcases the stable policy regime that we have had over the last 10 years, Memani added.

The Industry's body chairman also hailed the Indian government for bringing reform for constant economic growth

"The Q1 data also highlights credit to the government for ushering in reforms to ensure that new areas of economic growth keep on happening, Memani highlighted.

According to the CII president, the growth has been across the manufacturing sector, many sectors of services, so it's overall been very positive.

"Obviously, this growth momentum has also come to a large extent because of an increase in government expenditure, both government, both on the capital side as well as the revenue side," Mimani noted.

He emphasised that the government expenditure has jumped significantly and has led to the unprecedented growth rate in Q1.

"The government expenditure has increased by almost 20 per cent. So one must give credit to the government for ensuring that they are able to spend the money and ensure that the impact is positive without getting the Fisk into any kind of risk."

Compared to 6.5 per cent in the same quarter last year, India's GDP growth accelerated to a strong 7.8 per cent in the April–June quarter.

In the first quarter of 2025–2026, the agriculture sector recovered with a strong 3.7 per cent growth rate, compared to the 1.5 per cent growth rate in the first quarter of the previous fiscal year, when farm output was affected by an unpredictable monsoon.

Both the construction and manufacturing sectors saw growth of 7.6 and 7.7 per cent, respectively.

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