India's economy expands 7.8% in fiscal first quarter, beating estimates
The economy was driven by a strong performance in the financial, real estate, information technology and professional services sectors.
TL;DR
- India's economy grew by 7.8% in the June quarter, exceeding the expected 7.1%.
- Growth was primarily driven by the financial, real estate, information technology, and professional services sectors.
- Manufacturing and services sectors showed significant improvement, contributing to the strong performance.
- Consumer demand, automobile sales, and loan growth remain robust, unaffected by the Iran war as initially feared.
- The central bank expects growth to slow to 6.7% for the financial year ending March 2027 due to global economic uncertainty.
- Inflation has climbed to 4.45% in July, and the central bank noted potential risks to the farm sector from El Niño conditions.
- Despite rising inflation, India's central bank did not hike interest rates in its August policy.