India's GDP Growth Accelerates to 7.8% in Q1 2026, Surpassing Expectations

India’s economy expanded at a robust 7.8% annual rate in the first quarter of 2026, driven by strong manufacturing and services sectors, according to the latest government data released today. This growth rate surpasses economists’ forecasts of 7.3%, marking the fastest pace since 2023. The manufacturing sector grew by 9.2%, while services rose 7.5%, reflecting increased domestic demand and export momentum. The Reserve Bank of India noted that inflation remained stable at 4.6%, supporting consumer spending. Analysts from Bloomberg say this growth underscores India’s resilience amid global economic uncertainties and positions it as a key driver of global growth this year.