Indian Economy Exceeds All Expectations: Experts

(MENAFN- IANS) New Delhi, Aug 30 (IANS) Experts on Saturday hailed India's robust growth in the April-June quarter, saying that the economy has exceeded all expectations.

On India's GDP growing to 7.8 per cent in Q1 FY26, Professor Yashvir Tyagi, an economist, said that“I believe the performance shown by the Indian economy has exceeded expectations. The growth of 7.8 per cent is significantly higher than earlier estimates, which is a positive sign”.

“It also indicates that despite various challenges, the Indian economy remains one of the fastest-growing ones in the world,” he told IANS.

Dr. Suresh G. Paradva, Associate Professor, Department of Economics at Saurashtra University in Rajkot said the GDP growth is up due to good monsoon and there has been a significant increase in agricultural production.

“Three sectors are key in strengthening the country's GDP - agriculture, industry and services - and all showed robust performance in Q1 which is an encouraging sign,” he noted.

Riding against all odds, India's gross domestic product (GDP) is projected to grow 6.5 per cent this fiscal with downside risks from the US tariff hikes, according to a Crisil report.

India's real GDP growth accelerated 7.8 per cent year-on-year in the first quarter of this fiscal, from 7.4 per cent the fourth quarter of last fiscal.

Consumer demand - buoyed by healthy rural incomes, lower inflation and interest rates and income tax relief - is expected to remain robust in the coming quarters and support overall GDP growth, while healthy government investment spending should continue to provide buffer.

On the demand side, the main driver, household consumption, rose to 7 per cent from 6 per cent. Government spending also accelerated, with government consumption expenditure and investment seeing improvement.

-IANS

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