India's gross domestic product expanded 7.8% year-on-year in the April-June quarter, down from an upwardly revised 8.6% in the previous three months, government data released on Monday showed.
The slowdown reflects moderating domestic demand amid tighter financial conditions, though the pace remained among the fastest in major economies. Private consumption, a key driver of growth, rose 6.5% year-on-year in the quarter, while gross fixed capital formation increased 8.2%.
Government spending grew 4.2% year-on-year, contributing 0.7 percentage points to the headline expansion. Net exports subtracted 0.6 percentage points from growth as imports outpaced exports.
The Reserve Bank of India's benchmark repo rate stood at 6.5% during the quarter, unchanged since February 2023, as policymakers balanced growth and inflation objectives. Consumer price inflation averaged 4.8% in the quarter, above the central bank's 4% target but within the 2%-6% tolerance band.
Economists had expected a moderation following the prior quarter's stimulus-driven surge, with a Reuters poll forecasting growth of 7.4% for the period. The latest reading aligns with projections for a gradual slowdown through 2026 as global trade softens and domestic credit growth stabilizes.
India's growth outperformance relative to peers such as China and advanced economies underscores its resilience despite external headwinds. The government maintained its full-year GDP growth forecast of 7.0% for the fiscal year ending March 2027, citing resilient services activity and sustained infrastructure investment.
