Economists say the effect of a low deflator and low base is likely to boost expansion
Nearly all segments of the economy supported growth in the first quarter
Harsha Vardhan Agarwal highlighted that income tax relief and repo-rate reduction by the Reserve Bank of India were among several other factors for the GDP growth
India's GDP grew 7.8% in Q1 FY26, a five-quarter high led by manufacturing and services, though US tariffs pose risks to sustaining growth momentum
Wood has removed the investment in Aditya Birla Real Estate in his India long-only equity portfolio and replaced it with an investment in Mahindra & Mahindra (M&M)
Q1 FY26 GDP: MoSPI data shows GDP growth above RBI's 6.5% estimate; nominal GDP at ₹86.05 trillion, GVA at ₹44.64 trillion
India's gross domestic product probably expanded 6.7 per cent in the three months to June, the first quarter of the financial year, according to the median estimate in a Bloomberg survey
Data from the Annual Survey of Industries (ASI) show that these sectors together employed around 21 million workers directly and via contractors in 2023, Nomura said
The poll showed India GDP growth slowing to 6.5 per cent this quarter, 6.3 per cent in October-December and 6.2 per cent in January-March
Deflators may offset corporate results' impact on GDP
Sachs said that India could target 7 per cent GDP growth in the coming decade by focusing on East Asia
Economists expect India's FY26 GDP to face a 35-60 bps hit from US tariff hike; strong domestic demand may cushion the blow but targeted support may be needed
India condemns new 25% duty on exports; total levy now at 50%; analysts expect talks before August 27 deadline
Goldman Sachs lowered India's economic growth forecast after Donald Trump imposed a 25 per cent tariff
Economists warn of a 0.2-0.4% GDP impact as key exports to US-pharma, smartphones, textiles-face higher duties; indirect effects on investment likely
The 25 per cent US tariffs, plus a penalty for Russian imports, could dent India's GDP growth by 30 basis points in the current fiscal, but the higher duty is unlikely to significantly affect India's domestic demand-driven economy, Barclays said on Thursday. If the 25 per cent tariff, announced by US President Donald Trump on Wednesday, is implemented from August 1, the effective average US import tariff on Indian goods will rise to 20.6 per cent in trade-weighted terms, as per Barclays estimates. This is sharply higher than both the pre 'liberation day' tariff rate of 2.7 per cent and the 90-day pause tariff rate of 11.6 per cent. In contrast, India's import tariff on US goods is lower, at 11.6 per cent in trade-weighted terms. Barclays said that given the relatively closed nature of the Indian economy, wherein domestic demand is the mainstay of growth. "We do not see this 25 per cent tariff threat impacting GDP growth meaningfully, pegging the likely impact at 30 bp. We expect ..
The report said that despite these factors, India's economic activity remains robust, with domestic consumption set to grow strongly on the back of revival of rural demand
India Ratings & Research (Ind-Ra) on Wednesday trimmed India's growth projection for the current fiscal to 6.3 per cent, citing uncertainties around US tariffs and weak investment climate. Ind-Ra expects GDP in FY26 to grow 6.3 per cent y-o-y, 30bp lower than its earlier forecast of 6.6 per cent made in December 2024. The economy is facing both headwinds and tailwinds, it said in its mid-year economic outlook. "Major headwinds are: i) uncertain global scenario from the unilateral tariff hikes by the US for all countries and ii) weaker-than-expected investment climate. The major tailwinds are: i) monetary easing, ii) faster-than-expected inflation decline, and iii) likely above-normal rainfall in 2025", said Devendra Kumar Pant, Chief Economist and Head Public Finance, Ind-Ra. The Indian economy had grown at 6.5 per cent in 2024-25 (April 2024 to March 2025) Ind-Ra's projections for FY26 are lower than the 6.5 per cent GDP growth projected by the RBI and the Asian Development Bank .
Analysts expect Nifty to rise up to 6 per cent in six months, with intermittent corrections likely due to global factors
Private sector spending is still trailing far behind, and analysts generally agree the economy is still failing to create enough quality jobs for its large young population