India's economy grew by 7.8% in the first financial quarter ending in June, according to CNBC. This figure significantly exceeded experts' expectations, which had predicted a growth of 7.1%. The main driving forces were strong performances in the financial sector, real estate, information technology, and professional services, while growth in agriculture was relatively modest.
Barclays' chief economist in India, Aastha Gudwani, noted that the conflict in Iran did not have the expected negative impact on economic growth, and consumer demand remained 'stable.' Car sales, lending, production, and the services sector also showed stability. Meanwhile, the Reserve Bank of India had previously forecast that GDP growth for the reporting period would be 7%, and it expects a slowdown in growth rates to 6.7% for the financial year ending in March 2027.
The central bank warns that the global economic instability, high energy prices, and supply chain issues will continue to exert pressure on domestic economic activity. Additionally, the El Niño weather phenomenon poses risks for the agricultural sector.
Against the backdrop of high energy prices, inflation in the country has risen for nine consecutive months, reaching 4.45% in July. However, the regulator decided not to raise interest rates at the August meeting.
