India's Q1 GDP growth showcases economy's underlying strength, govt reforms: CII's R. Mukundan

New Delhi, Aug 30 (IANS) India's Q1 GDP growth rate of 7.8 per cent is a demonstration of the economy's underlying strength and government reform-driven vision, R. Mukundan, CII President Designate, said on Saturday.

The stellar performance comes at a time when much of the world is facing economic headwinds.

“This reinforces India's position as a global growth leader. We particularly commend the government for its continued emphasis on capital expenditure, infrastructure build-out, which not only is lifting near-term demand but also laying the foundation of sustained competitiveness,” Mukundan said.

The strong growth seen in manufacturing, key sectors such as finance, logistics, hospitality, and IT, reflects both policy support and confidence of the Indian enterprise, he added.

“This is equally encouraging as we have seen in many of our surveys, especially in CII analysis, CMI data, that private sector Capex is reviving,” he noted.

This resurgence signals the start of a new investment cycle with industry stepping up to complement public investment.

Mukundan further stated that going forward, India must build on momentum by strengthening its exports in multiple markets, especially by diversifying exports, scaling up skilling initiatives and ensuring affordable, reliable logistics and energy.

“The continued partnership with government and business, we are confident India will not only sustain this robust growth but also accelerate and progress towards the vision of Viksit Bharat by 2047,” he emphasised.

India’s GDP growth accelerated to a robust 7.8 per cent in the first quarter (April-June) of the current financial year compared to the growth of 6.5 per cent during the same quarter of FY 2024-25, official figures released by the Ministry of Statistics showed.

The agriculture sector bounced back with a strong growth rate of 3.7 per cent in the first quarter of 2025-26, as compared to the growth rate of 1.5 per cent registered in the first quarter of the last financial year when farm output was hit by an erratic monsoon.

The manufacturing sector posted a growth of 7.7 per cent, and the construction sector grew by 7.6 per cent.

--IANS

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