On August 26, 2026, girls buy rakhi from a roadside stall in Nagaon district, Assam state, India, ahead of Raksha Bandhan, a Hindu festival celebrating the bond between brothers and sisters.
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India’s economy grew 7.8% in the quarter ended June, mainly due to strong performance in the financial, real estate, information technology and professional services sectors.
The figure comfortably beat the 7.1% growth forecast compiled by Reuters and followed the previous quarter’s 7.8% growth.
India’s Ministry of Statistics and Program Implementation said in a release on Monday that the performance of manufacturing and services sectors improved sharply in the June quarter while growth in agriculture and allied sectors was slow.
Aastha Gudwani, chief economist for India at Barclays, earlier told CNBC’s Inside India that the Iran war has not affected India’s growth as much as feared.
Of the 20 high-frequency indicators Barclays tracks, only seven have slower average growth in the April-June period than in the January-March period, he said, adding that consumer demand remains “robust.” Growth in manufacturing, services, auto sales and lending is also very strong, he added.
Earlier this month, India’s central bank warned that while India’s economy remains “resilient” amid geopolitical uncertainty, growth is expected to slow this fiscal year.
The Reserve Bank of India had expected India’s economy to grow 7.0% in the three months to June and 6.7% in the fiscal year ending March 2027.
The central bank expects a “turbulent global economic environment” to impact domestic economic activity, as energy prices and supply chain pressures remain “rising and uncertain”.
The central bank said earlier this month that El Niño could lead to a deficient and uneven southwest monsoon, posing risks to India’s agricultural sector and rural demand.
The effects of soaring energy prices are already being felt in India, where the country’s inflation rate rose steadily for nine consecutive months to 4.45% in July. However, unlike some of its Asian peers, the RBI refrained from raising interest rates in August.
