India's economy expanded 7.8% year-on-year in the April-June quarter, marking a deceleration from the revised 8.6% growth recorded in the previous three months, according to official data published Monday.
The quarterly expansion, reported by the government and cited by Investing.com via Reuters, fell short of market expectations, which had anticipated a slower but still robust pace of growth. The latest reading reflects moderation across key sectors, including manufacturing and services, following a stronger-than-expected rebound in the first quarter.
The Ministry of Statistics and Programme Implementation released the figures, which underscore the uneven trajectory of India's post-pandemic recovery. The government maintained its full-year GDP growth target of 6.5% to 7.0% for the fiscal year ending March 2027, despite the sequential slowdown.
The data arrives amid ongoing policy debates over fiscal consolidation and structural reforms aimed at sustaining long-term growth. Analysts have noted that while domestic demand remains resilient, external headwinds—including global trade uncertainty and elevated commodity prices—continue to pose risks to the outlook.
The government's advance estimates for the fiscal year 2026-27, released earlier this year, had projected growth in the 6.5-7.0% range, with agriculture, industry, and services all expected to contribute to the expansion. The latest quarterly figure aligns with that guidance but highlights the challenge of maintaining momentum amid shifting macroeconomic conditions.
Investing.com noted the release of the data on Monday, with the report edited by Maria Ponnezhath and originally attributed to Reuters.
