India’s Economy Grows 7.4% in Q1 2026, Surpassing Expectations

India’s economy expanded by 7.4% in the first quarter of 2026, driven by strong manufacturing and services sectors, according to the Ministry of Statistics and Programme Implementation. This growth rate exceeds analysts’ forecasts of 6.8%, marking one of the fastest quarterly expansions in recent years. The manufacturing sector grew 9.2%, while services increased by 6.5%, reflecting robust domestic demand and export growth. The government’s push for infrastructure development and digitalization also contributed to the positive momentum. Despite global economic uncertainties, India’s GDP growth signals resilience and continued recovery from pandemic-related disruptions, Reuters reported. Economists say sustained investments and reforms could keep growth on track for the full year.