GDP News: US President Donald Trump had threatened massive tariffs not only on India but also on the whole world in April 2025. Not only this, when he called the Indian economy a 'dead economy', ignoring Trump's statements, the Indian economy has registered a GDP growth rate of 7.8 percent in the first quarter of April-June of the current financial year, which has been higher than the estimate of 6.7 percent. Moreover, the growth rate of April-June has been the fastest in the last five quarters. Along with the agriculture sector, the good performance of trade and hotels has helped in the growth.
Trump had announced massive tariffs on 200 countries, including India, on Liberation Day on April 2, which was to be implemented from April 9, but later its deadline was extended several times and finally a 25 percent tariff on India came into effect from August 7, which has been increased to 50 percent from August 27.
Despite Trump's tariff threats and 'terrorist' statements calling India a tariff king, the Indian economy has registered unprecedented growth. Compared to last year, India has registered a growth rate of 7.8 percent in the first quarter of April-June 2025-26, which was 6.5 percent in the same period last year. The GDP growth rate in the fourth quarter of the financial year 24-25 was 7.4 percent. The real GDP in the first quarter of the financial year 2025-26 is estimated at Rs. 47.98 lakh crore, while in the same period of 2024-25 it was Rs. 44.42 lakh crore, which shows a growth rate of 7.8 percent.
According to government data, the previous fastest growth rate was 8.4 percent in January-March 2024. China's GDP growth rate was 5.2 percent in April-June 2025, while India was one of the fastest growing economies in the world.
According to the current report, the Indian economy is moving at a good pace in the beginning of the financial year 2025-26. Especially the boom in the services sector, continuous investment and a surge in government spending give positive signs. Real GDP growth was recorded at 7.8 percent in the first quarter of the financial year 2025-26.
Similarly, due to the excellent growth in the services sector, the Indian economy has also registered a real GDP growth of 7.6 percent in the same period.
According to the National Statistics Office (NSO), the nominal GDP in the first quarter of the financial year 2025-26 was Rs. 86.05 lakh crore, which was Rs. 79.08 lakh crore in the same period in 2024-25, showing a growth of 8.8 percent. The real GDP growth rate in agriculture and its allied sectors was 3.7 percent, while the growth rate in the first quarter of the last financial year was 1.5 percent.
The secondary sector, especially manufacturing at 7.7 percent and production at 7.6 percent, has recorded a growth rate of more than 7.5 percent at constant values in the same quarter. However, the mining sector has recorded a growth rate of minus 3.1 percent and the electricity, gas, water supply and other utility services sector has recorded a growth rate of 0.5 percent. Real personal final consumption expenditure (PFCE) grew by 7.0 per cent in the first quarter of 2025-26, compared to 8.3 per cent in the same period last year.
