BS EDIT: Beating the odds

By Business StandardPublished On Sep 1, 2026

Strong Start

India’s GDP grew 7.8% in Q1 FY27, up from 6.9% a year earlier. GVA growth was stronger at 8.2%, signalling resilience despite the West Asia crisis

Services Lead

The tertiary sector grew 10%, while manufacturing expanded 9.2%. Construction also recovered strongly, highlighting the role of industry and services in driving growth

Agriculture Lags

Agriculture and allied activities grew 3.6%, down from 4.4% a year earlier. A below-normal monsoon could further constrain farm output and weaken primary-sector growth

Investment Momentum

Investment growth accelerated to 11.9% from 5.8% a year earlier. The higher capital-formation share is encouraging, but sustained and broad-based investment will be crucial

Risks Ahead

Tax relief, GST cuts and supportive monetary policy aided growth. Their impact may fade, while elevated crude prices, global financial tightening and geopolitical risks remain

Sustain the Momentum

The first-quarter performance is impressive, but sustaining growth will require careful policy management

Protecting public capital expenditure amid rising budget pressures will be critical