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India's Economy Surges 7.8%, Outpacing China's Growth

9/1/2025

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Story summary
  • India's economy grew by 7.8% in Q1 FY26, exceeding the Reserve Bank of India's forecast of 6.5-6.7%.
  • The services sector led growth, while agriculture rebounded at 3.7%.
  • Economists show cautious optimism amid potential impacts from new U.S. tariffs.
  • India continues to be the fastest-growing major economy, surpassing China.