India’s Economy Shows Strong Resilience Despite External Pressures

India’s economy grew quickly in the June quarter, even though oil was expensive and there were problems around the world.

It grew 7.8% compared with the same period a year earlier.

Factories and service businesses both helped the economy expand.

India’s exports also increased despite tariff problems in the United States.

Businesses invested more, and families continued to spend money.

Tax relief and cuts to goods and services tax may have helped support spending.

However, expensive oil, bad weather, and weaker global growth could make things harder.

If inflation spreads, the Reserve Bank of India may have more freedom to raise interest rates.

Even with these risks, growth of 7% or more in FY27 is described as increasingly achievable unless there is another major external shock.