India’s Q1 GDP Grows 7.8% as Modi’s Asia Tour Boosts Reform Momentum

India has demonstrated strong economic resilience with a 78% GDP growth in the first quarter of FY 2025-26, despite facing global economic challenges, including increased tariffs from the United States.

Prime Minister Narendra Modi's recent visits to Japan and China emphasize India's strategy to enhance tech collaboration and regional trade, aligning with the country’s reform-driven economic momentum

Industry leaders celebrate the broad-based growth, with significant contributions from the services sector, manufacturing, and agriculture, supported by normal monsoon conditions and a revival in private capital expenditure

The Confederation of Indian Industry highlights that the GDP growth reaffirms India’s status as the fastest-growing large economy, driven by sectors like IT, financial services, logistics, and tourism

There is a notable increase in Gross Fixed Capital Formation, indicating strong investment momentum, supported by monetary easing and resilient domestic consumption

Amid global protectionism, India's export community is diversifying strategies through new Free Trade Agreements and leveraging the vibrant domestic market to mitigate external shocks

Modi's visit to the semiconductor facility in Japan marks a significant step in India's ambitions to develop domestic chip-making capacity, aligning with the country's Semiconductor Mission

At the Shanghai Cooperation Organization Summit, Modi's engagements are expected to foster startup collaboration, technology transfer, and infrastructure investment, offering alternatives to Western markets

India’s economic performance and strategic diplomatic outreach highlight its resilient growth trajectory, driven by domestic demand and investment-led recovery

The focus on inclusive growth, supported by initiatives in tier-2/3 cities, women-led ventures, and digital public infrastructure-backed startups, is transforming India’s economic landscape from the ground up