India’s economy surpasses expectations with 7.8% growth despite global unrest

India’s GDP growth of 7.8% in the April-June quarter defies geopolitical tensions and global uncertainties, highlighting its resilient economic trajectory amid external pressures.

India’s economy expanded 7.8% in the April-June quarter, beating forecasts and reinforcing the view that the country is still outpacing other major economies even as conflict in West Asia and wider global uncertainty unsettle markets. The Ministry of Statistics and Programme Implementation said real gross domestic product reached ₹81.36 lakh crore, up from ₹75.46 lakh crore a year earlier, while nominal GDP rose 10.3% to ₹88.27 lakh crore.

The quarterly figure was slower than the 8.6% pace seen in the previous quarter, but it still came in above the Reserve Bank of India’s 7% estimate for the period. Analysts had warned that the fighting involving Iran could feed through to India via higher oil prices, supply-chain disruption and weaker overseas demand. Reuters reported that growth was supported by household spending, exports and government capital investment, helping offset some of those external pressures.

The strength of the data is likely to give policymakers some breathing room as they try to preserve momentum without losing sight of inflation risks and volatility in commodity markets. The Reserve Bank has projected full-year growth of 6.7% for 2026-27, and the latest reading suggests domestic demand has so far held up better than many expected.

Prime Minister Narendra Modi welcomed the numbers on social media, saying critics who doubted India’s economic resilience had been proven wrong. His comments were aimed at a familiar political debate over whether the economy can keep expanding at pace while facing geopolitical shocks, higher import costs and uneven global trade conditions.