India’s FY27 Growth Momentum Holds as External Risks Mount

India’s economy grew strongly during the first three months of FY27.

It expanded by 7.8%, which was the best first-quarter result in the current data series.

The government expects growth to continue, but at a slower rate of 7.3% in the next quarter.

Factories, construction companies and service businesses all helped the economy grow.

People continued spending, and businesses increased investment.

Electricity use, fuel use and bank lending also remained strong.

Some measures, such as manufacturing activity and e-way bill generation, grew more slowly.

Conflict in West Asia disrupted energy markets and trade routes around the world.

Higher oil prices and changing weather increased pressure on prices, but most items still had inflation below 4%.