New Delhi : Economists from Lucknow and Chennai have praised India’s 7.8% GDP growth in Q1 FY26. They pointed to strong consumer demand and resilience against global pressures, including US tariff hikes.
Lucknow-based expert Siddharth Kalhans said the projection reflects India’s steady upward path. “Our growth graph is rising, even beyond RBI’s estimate. The Union Budget’s impact is visible. US tariffs may cause only a 0.5% dip, which is minor for India,” he explained.
Chennai economist Suriya Narayanan echoed the optimism. “GDP growth is stronger than expected. RBI projected 6.5%, but India achieved more. To sustain this, exports must strengthen,” he said.
India’s real GDP grew 7.8% year-on-year in Q1, up from 7.4% in the previous quarter. Supply-side growth rebounded to 7.6%, powered by services. Manufacturing also improved with lower input costs and rising demand.
Dipti Deshpande, Principal Economist at Crisil, said consumer demand will remain robust. “Healthy rural incomes, lower inflation, tax relief, and stable rates support spending. Government investment also cushions growth through higher capital expenditure,” she noted.
On the demand side, household consumption rose to 7% from 6%. Government spending and investment also gained pace. States and the Centre boosted capex sharply, rising 27.8% year-on-year.
Exports improved due to advance shipments before US tariff hikes. Experts warn this advantage will fade in coming quarters. Crisil cautioned that 50% US tariff hikes, along with a global slowdown, could hurt external demand.
The MSME sector, which makes up 45% of India’s exports, may face the biggest strain. Without a trade deal with the US, small exporters risk greater losses.
Despite these concerns, experts remain confident. They argue India’s diversified trade links and solid domestic demand will help sustain momentum in FY26.
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