- India's GDP grew 7.8% in Q1 of FY26, marking robust economic recovery
- Manufacturing, construction, and services led the broad-based growth
- Private Final Consumption Expenditure rose 7% year-on-year in Q1
India's economy posted a robust 7.8% GDP growth in the first quarter of FY26, reflecting a strengthening recovery anchored by solid macroeconomic fundamentals, Department of Economic Affairs Secretary Anuradha Thakur told NDTV Profit.
"The high-frequency indicators had been green-signalling potentially higher numbers,” she said, pointing to broad-based supply-side support. Key sectors such as manufacturing, construction, and services were the primary growth engines, indicating a well-rounded expansion across the economy.
On the demand side, Thakur highlighted the strong performance of Private Final Consumption Expenditure (PFCE), which expanded 7% year-on-year, and Gross Fixed Capital Formation (GFCF), which grew by 7.8%. “The PFCE share in GDP has reached 60.3%—the highest first-quarter level in 15 years,” she added.
Government capital expenditure also played a pivotal role, helping sustain the momentum in investment-led growth through GFCF.
The upbeat Q1 data supports the government's narrative of sustained recovery, even amidst global uncertainties and tariff-related headwinds.
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