India outshone every estimate with a strong 7.8% GDP growth in Q1: PM Modi at SEMICON India 2025

The recently released GDP numbers, which showed India’s first quarter with a strong 7.8% growth, surpassed every expectation and estimate, Prime Minister Narendra Modi said at the inauguration of the SEMICON India event on Tuesday.

“On one hand, there is cause for worry in economies worldwide, challenges stemming from vested economic interests. In such an environment, India has demonstrated growth of 7.8%. The pace at which India is growing has instilled renewed energy in the industry and among all citizens of the country. If this is the direction of growth, then it would cement India’s path towards becoming the third-largest economy in the world,” PM Modi said.

Earlier, Union Commerce and Industry Minister Piyush Goyal hailed the country’s economic performance, calling India a “global growth engine fuelled by reforms and resilience.”

“We are a global growth engine fuelled by reforms and resilience. This is the strength and resilience of the Indian economy. The services sector has been the key driver of GDP growth, beating expectations for the second consecutive quarter,” said Goyal in a post on X.

Goyal also shared a graphic stating that, amid the robust GDP growth in the first quarter of this fiscal year, the growth is the highest in five quarters, driven by strong growth in services, agriculture, and construction, following the latest set of reforms.

Speaking to PTI, Goyal added that the economic progress made by the country is a resounding response to pessimists’ who believe India is a dead economy.

“India is full of resilience, confidence…[and will] continue to be the fastest growing economy in the world for the next 22 years. We have huge opportunities all over the world and… our exports will continue to grow. We’ll do higher exports this year than last year,” he added.

The April–June growth outpaced the 7.4% expansion recorded in the previous quarter and was significantly higher than the 6.5% seen in the same period last year. A combination of sustained domestic demand and easing inflation underpinned the momentum, according to economists.

Within services, public administration grew by 9.8%, financial and real estate services expanded by 9.5%, while trade, hotels, transport, and communication rose by 8.6%. Manufacturing activity also remained strong at 7.7%, while construction climbed to 7.6%. Agriculture, traditionally slower growing, recorded a notable 3.7% expansion.

On Friday, addressing a press conference on the GDP numbers, Chief Economic Advisor V. Anantha Nageswaran said the Indian economy defied expectations of modest growth of around 6.5% to 7%, which was broadly the consensus range. “India’s numbers are far higher in comparison to other countries that have declared numbers for the April-June quarter GDP numbers. The growth was particularly broad-based,” he said.