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India's economy expands faster than expected at 7.8 percent

India's gross domestic product growth exceeded analyst forecasts in the latest quarter, expanding at 7.8 percent despite regional geopolitical tensions. The stronger-than-anticipated performance underscores the resilience of Asia's third-largest economy.

LSN World News · 31 August 2026

India's economy expands faster than expected at 7.8 percent

India's economy expanded at a faster pace than anticipated, with GDP growth reaching 7.8 percent in the recent quarter, according to official data released Wednesday. The figure surpassed consensus expectations among economists, who had projected a more modest expansion amid global uncertainties.

The robust growth reflects sustained domestic demand and continued expansion across key sectors of India's economy. Industrial activity, services, and consumer spending remained relatively buoyant, offsetting headwinds from international trade tensions and regional geopolitical concerns including ongoing conflicts in neighbouring regions.

The performance positions India as one of the world's fastest-growing major economies, maintaining its trajectory as a significant driver of growth in the Asian region. Analysts attributed the expansion to steady investment in infrastructure and a stable domestic consumption base.

The growth data comes as policymakers monitor inflation trends and currency stability. The Reserve Bank of India will likely assess the figures as it calibrates its monetary policy stance in the months ahead. Economists said the economy's resilience should support continued job creation and living standards across the country.