Q1FY26 GDP Growth Explained | First Numbers After U.S. Tariff Announcement

India’s economy delivered a strong performance in Q1FY26, with GDP rising 7.8%—a five-quarter high—beating market expectations. Data released by the NSO highlighted broad-based growth driven by robust government capital spending, construction activity, and resilient agriculture output. Services expanded sharply at 9.3%, while manufacturing held steady at 7.7%. Agriculture grew 3.7%, more than double last year’s pace, though mining contracted 3.1%. Gross Value Added (GVA) also rose 7.6% versus 6.5% a year ago. Private consumption increased 7.0%, reflecting steady domestic demand. With GST collections and aviation cargo traffic rising, the outlook remains positive despite global trade risks and the US tariff blow. Watch Siddharth Zarabi, Group Editor Business Today in conversation with Radhika Rao, ED & Senior Economist, DBS Bank; Rumki Majumdar, Economist, Deloitte and Madhavi Arora, Chief Economist, Emkay Global as they decode Q1 GDP numbers and discuss the growth path ahead.