India's GDP growth rate increased to 7.8%, the highest in five quarters

Current Context: On August 29, 2025, the Ministry of Statistics and Programme Implementation (MoSPI) released India’s GDP data for Q1 FY2025–26, showing a growth rate of 7.8%, the highest in five quarters.

• This surge was driven by robust expansion in the manufacturing sector (7.7%) and services sector (9.3%), despite subdued performance in mining and electricity.
• Private consumption rose by 7%, supported by rural recovery and government expenditure.
• The growth exceeded the Reserve Bank of India (RBI) forecast of 6.5%, reinforcing India’s position as the fastest-growing major economy.
• Economists noted strong urban demand and resilient investment activity.

Question:

Q.1 On August 29, 2025, the Ministry of Statistics and Programme Implementation (MoSPI) released India’s GDP data for Q1 FY2025–26. What was the reported growth rate?
a) 6.5%
b) 7.0%
c) 7.8%
d) 8.2%

Answer: c) MoSPI reported a GDP growth rate of 7.8%, the highest in five quarters. This exceeded RBI’s forecast of 6.5%.