India GDP Grows 7.8% Q1 FY26 Surpasses Estimates

India's economy grew unexpectedly by 7.8% year-on-year in the April-June quarter of fiscal year 2026, surpassing economists' forecasts of around 6.7%. This growth marks an increase from the previous quarter's 7.4% expansion, reaching a five-quarter high for the country. Despite concerns over rising U.S. tariffs potentially affecting Indian exports and employment, the data reveals strong economic resilience. The robust performance challenges earlier predictions of a slowdown, bolstering confidence in India's economic prospects amid global uncertainties. Official data and multiple sources confirm that this growth rate has outpaced most analysts' expectations, with previous estimates ranging from 6.5% to 7%. Overall, India's economy continues to demonstrate significant momentum despite external challenges.