India's GDP recorded a growth of 7.8% in the April-June quarter, reaching a five-quarter high. The economic growth was spurred mainly by the b performance of the agriculture and manufacturing sectors. Despite Donald Trump's tariffs, India's economy remained robust from a global perspective.
India's GDP: India's economic growth stood at 7.8% in the first quarter (April-June) of the current financial year, marking the highest in the last five quarters. According to data from the National Statistical Office, the agriculture sector grew by 3.7% and the manufacturing sector by 7.7%. Despite the tariffs imposed by Donald Trump, India's economy demonstrated a stellar performance, proving its strength on global standards.
Contribution of the Agriculture Sector
According to data from the National Statistical Office (NSO), the agriculture sector registered a growth of 3.7 percent in the April-June 2025 quarter. In the same quarter last year, the agriculture sector's growth was only 1.5 percent. This growth boosted both rural demand and crop production. Experts believe that favorable monsoon conditions and the impact of government schemes also played a significant role in the growth of the agriculture sector.
Manufacturing and Industrial Sector
The growth rate of the manufacturing sector also saw a marginal increase to 7.7 percent. In the same quarter last year, this rate was 7.6 percent. The progress in this sector indicates that India's production capacity and industrial activities remain b. According to experts, the steady growth of the manufacturing sector will also improve the country's export prospects.
Contribution of the Services Sector
The services sector also played a crucial role in GDP growth. Positive trends were observed in financial services, IT, and telecommunications. Continuous investment and technological advancements in these sectors led to an increase in employment generation. The robustness of the services sector contributed to the stability and growth rate of the economy.
India has now emerged as the world's fastest-growing major economy. China's GDP growth rate in April-June 2025 was 5.2 percent. In comparison, India's growth rate is significantly higher. This reflects India's economic strength and investment attractiveness at the international level.
Impact of Trump Tariffs on the Market
The tariffs imposed by the US on India had raised questions about global trade. However, it did not have a significant impact on India's GDP growth. Strong demand in the agriculture and manufacturing sectors, along with the growth in the domestic market, mitigated the effect of the tariffs. Thus, India demonstrated b performance while facing international trade pressures.
Comparison with Previous Records
According to the data, the highest GDP growth prior to this was 8.4 percent in the January-March quarter of 2024. The 7.8 percent growth in the first quarter surpassed all estimates. Experts state that economic reforms and investment incentives have helped in maintaining the stability of the growth rate.
Impact on Investors and the Market
The positive GDP growth news led to enthusiasm among domestic and international investors. Investor confidence also increased in the stock market. The strength of domestic industries and the services sector further enhanced investment attractiveness. Due to this growth, the Indian economy conveyed a message of stability among global investors.
