Indian economy continues strong growth trajectory
India's economy grew at a robust 7.8% in the third quarter of the fiscal year, surpassing analyst expectations and cementing the country's position as the fastest-growing major economy in the world.
The data released by the Ministry of Statistics and Programme Implementation showed strong performance across manufacturing, services, and agriculture sectors. The manufacturing sector posted a 8.1% growth while services expanded at 7.6%.
"These numbers reflect the resilience of the Indian economy and the effectiveness of our structural reforms," Finance Minister Nirmala Sitharaman said in a statement. "We remain confident in achieving our full-year target."
Economists at major banks revised their annual forecasts upward following the strong Q3 data. Goldman Sachs increased its projection from 6.8% to 7.2% for the full fiscal year.
The strong GDP numbers come despite global headwinds, including geopolitical tensions and elevated inflation in advanced economies. India's domestic consumption, driven by a growing middle class and increased government spending on infrastructure, has been a key driver.
The RBI had previously flagged upside risks to growth, citing robust private investment and strong credit expansion. Corporate earnings have also been beating estimates across sectors.
