India GDP Growth Surpasses Expectations

EthereumCraftsman · 2026-02-27T11:04:17+00:00

India's GDP grew by 7.8% in December 2025, slightly down from 8.4%, but above the 7.2% expectation. The economy showed resilience amid U.S. tariffs, with strong private consumption but slower government spending and capital formation. Overall, FY2026 GDP growth was revised to 7.6%.

EthereumCraftsman

2026-02-27 11:04:17

Abstract generation in progress

The Indian real gross domestic product expanded by 7.8% from the previous year in the December quarter of 2025, inching down from the upwardly revised, six-quarter high of 8.4% in the earlier period but firmly above market expectations of 7.2%. Despite the slowdown, the growth rate remained the highest among G20 economies, signaling a degree of resilience of the Indian economy to the 50% tariffs from the United States that were passed in August, aided by an increase in government spending and GST tax cuts to support consumer confidence and private investment. Private consumption expanded by 8.7%, accelerating from the 8%. In turn, government expenditure slowed (4.7% vs 6.6% in FY26Q2) and gross fixed capital formation moderated (7.8% vs 8.4%). Net external demand contributed negatively to GDP growth, as exports expanded by 5.6% and imports rose by 8.6%. With the reading, the GDP growth for FY2026 was revised higher to 7.6%, equalling the highest since FY2022.

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