India's economy is on a remarkable upswing, with GDP growth surging to 7.8% in the April–June 2025 quarter (Q1 FY26) , the highest in the last five quarters. This achievement outpaces major global economies and reinforces India's position as the world's fastest-growing economy. What’s Driving This Growth? Services Sector Boom: Services grew at a robust 9.3% year-on-year, leading the charge in sectors like IT, finance, transport, and real estate. Manufacturing and Construction: Manufacturing jumped 7.7% (from 4.8% last quarter), and construction maintained a strong 7.6% growth, reflecting heightened investment and infrastructure activity. Domestic Demand: Rising consumer spending and urban incomes are fueling this expansion, pushing retail, housing, and related economic activities. Capital Investment: Private and public investments grew, with fixed capital formation, the measure of new business plant and equipment, up by 9.4%, a two-year high. Resilience ...
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