“India Retains Fastest-Growing Major Economy Crown”: Ajay Bagga On Higher Than Expected 7.8% Q1 GDP Growth
August 29, 2025
India’s GDP grew 7.8% in Q1 FY26 (Apr–Jun 2025), beating RBI’s 6.5% forecast and last year’s 6.5% growth. Nominal GDP rose 8.8%, aided by low inflation. Market expert Ajay Bagga hailed it as the best in five quarters, reaffirming India’s crown as the fastest-growing major economy.
As India’s Gross Domestic Product (GDP) grew by a strong 7.8% in the April–June quarter of FY26, market expert Ajay Bagga said this was the best quarterly performance in five quarters. The figure reflects a sharp improvement over last year’s 6.5% growth and came in well above the Reserve Bank of India’s (RBI) forecast of 6.5%.
“India’s gross domestic product (GDP) is up 7.8% in Q1 FY2026 (Apr–Jun 2025). The last year’s number was at 6.5%. RBI forecast for Q1 was at 6.5%. This is a huge outperformance to start the year,” Bagga wrote on X (formerly Twitter).
Nominal GDP expanded by 8.8% in the quarter, aided by relatively low inflation. Bagga pointed out that the robust growth was achieved “despite a war, global policy uncertainty, and FPI outflow pressures,” underscoring the economy’s resilience.
He also noted that while critics may dismiss GDP as a lagging indicator, the 7.8% print offers a significant boost to sentiment. “Silver lining, green shoots, best quarterly GDP number in five quarters… take your pick. The fastest-growing major economy crown stays,” Bagga remarked.
India’s Q1 FY26 numbers, released by the National Statistical Office (NSO), highlight the country’s strong economic momentum. With real GDP rising 7.8% and nominal GDP up 8.8% in April–June, India has not only outpaced its own past performance but also reinforced its standing as the world’s fastest-growing large economy.
“India’s gross domestic product (GDP) is up 7.8% in Q1 FY2026 (Apr–Jun 2025). The last year’s number was at 6.5%. RBI forecast for Q1 was at 6.5%. This is a huge outperformance to start the year,” Bagga wrote on X (formerly Twitter).
Nominal GDP expanded by 8.8% in the quarter, aided by relatively low inflation. Bagga pointed out that the robust growth was achieved “despite a war, global policy uncertainty, and FPI outflow pressures,” underscoring the economy’s resilience.
He also noted that while critics may dismiss GDP as a lagging indicator, the 7.8% print offers a significant boost to sentiment. “Silver lining, green shoots, best quarterly GDP number in five quarters… take your pick. The fastest-growing major economy crown stays,” Bagga remarked.
India’s Q1 FY26 numbers, released by the National Statistical Office (NSO), highlight the country’s strong economic momentum. With real GDP rising 7.8% and nominal GDP up 8.8% in April–June, India has not only outpaced its own past performance but also reinforced its standing as the world’s fastest-growing large economy.