India's economy grew by 7.8% in the quarter ending June, surpassing expectations of 7.1%. The growth was driven by strong performances in the financial, real estate, information technology, and professional services sectors.
India's central bank in August projected the economy would grow by 7% in the three months ending June and 6.7% for the financial year ending March 2027.
While agriculture and allied sectors reported tepid growth, the performance of manufacturing and services sectors sharply improved in June.
India's economy has not been impacted by the Iran war as feared, according to Aastha Gudwani, chief economist at Barclays.
Earlier this month, the central bank warned that even though the economy had remained "resilient," growth was expected to slow over this financial year.
The impact of high energy prices is already being felt in India, with inflation climbing steadily to 4.45% in July.
