Domestic industries are upbeat about India's robust GDP growth of 7.8% in the first quarter of the current financial year. Industry bodies are of the view that the strong economic growth numbers are a proof of the underlying  strengths of the Indian economy amidst global challenges.

Confederation of Indian Industry (CII) President Rajiv Memani called this growth as a proof of the underlying strengths of the economy, aided by strong government expenditure, and healthy performances from manufacturing and services.

“India's growth story reflects the underlying strengths of the Indian economy, strong fiscal boost through increased government expenditure, great performances by services and manufacturing, and of course, continued reforms. At 7.8% GDP growth, not only would India be the fastest growing, but this would also be standout growth in the face of many global headwinds,” Memani said.

Federation of Indian Export Organisations (FIEO) President S C Ralhan described the 7.8% growth as a demonstration of resilience, crediting it to reforms in areas like GST rationalisation, infrastructure, digitalisation, and financial inclusion.

“At a time when global trade continues to grapple with uncertainties and tariff wars, India’s vibrant domestic market has provided a strong cushion, ensuring sustained momentum in consumption and investment,” Ralhan said.

Ralhan noted that under the current global conditions, domestic demand has become more pertinent than ever, giving India a strategic advantage.

“While exporters face challenges from tariff headwinds in key markets, India’s ability to balance domestic absorption with diversification through new FTAs provides a unique strategic advantage,” he added.

The industry body noted that the focus shall remain on strengthening the exporter trade ecosystem that are key for growth and employment opportunities in India.

“Going forward, our focus will be on further strengthening the trade ecosystem so that exporters continue to contribute meaningfully to employment generation and inclusive growth,” FIEO noted.

Government data released on Friday showed that nominal GDP expanded 8.8%, while core GVA grew 8% year-on-year compared to 7.1% in Q1 FY25. Manufacturing and services sectors remained the star performers, growing 7.7% and 9.3% respectively.

Agriculture rose 3.7% while industry was subdued at 6.3%, dragged by a 3.1% contraction in mining and negligible 0.5% growth in electricity, gas, water supply and utilities.