India's economy expands 7.8% despite regional tensions

India's economy grew at 7.8% in the latest quarter, outpacing analyst forecasts and demonstrating the country's ability to weather external shocks. The expansion signals continued momentum in domestic consumption and investment activity, even as geopolitical tensions in the Middle East have rattled global markets.

Economists had anticipated a more modest growth rate given the prevailing uncertainty surrounding regional conflicts and their potential impact on energy prices and global supply chains. India's outperformance reflects strong performance in sectors including services, manufacturing, and agriculture.

The figure comes as the Reserve Bank of India maintains its cautious stance on inflation management. Officials have signaled that while growth remains solid, they continue to monitor price pressures and external vulnerabilities closely.

Analysts attribute part of the growth to increased government spending and robust private sector activity. The data suggests India is likely to remain among the world's fastest-growing major economies despite headwinds from global trade tensions and rising geopolitical risks in neighboring regions.