{"id":15661,"date":"2025-09-26T12:58:01","date_gmt":"2025-09-26T12:58:01","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/26\/indias-economic-outlook-remains-broadly-optimistic-despite-global-woes-finance-ministry-report-economy-news\/"},"modified":"2025-09-26T12:58:01","modified_gmt":"2025-09-26T12:58:01","slug":"indias-economic-outlook-remains-broadly-optimistic-despite-global-woes-finance-ministry-report-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/26\/indias-economic-outlook-remains-broadly-optimistic-despite-global-woes-finance-ministry-report-economy-news\/","title":{"rendered":"India’s Economic Outlook Remains Broadly Optimistic Despite Global Woes: Finance Ministry Report | Economy News"},"content":{"rendered":"


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India’s real GDP grew 7.8 percent YoY in Q1 FY26, driven by strong domestic demand, manufacturing, and services, according to the finance ministry’s latest Monthly Economic Review.<\/h2>\n
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GDP growth remains driven primarily by domestic demand, with the share of private consumption in Q1 FY25 being the highest first-quarter share of consumption in nominal GDP in the past 15 years, says the finance ministry.<\/p>\n<\/figure>\n

India\u2019s economic momentum picked up in Q1 FY26, with real GDP growing by 7.8 per cent YoY in April-June 2025 quarter, higher than most estimates, according to a finance ministry report released on September 26. It added that the country\u2019s economic outlook remains \u201cbroadly optimistic” despite turbulent international environment.<\/p>\n

\u201cIndia\u2019s economic outlook remains broadly optimistic despite a turbulent international environment marked by geopolitical uncertainties and shifting trade dynamics. The GDP growth surprised on the upside in Q1 FY26. Domestic components of demand have played a key role in supporting growth and is expected to remain so in the next half year as well,” the ministry said in its \u2018Monthly Economic Review August 2025\u2019.<\/p>\n

A pick-up in the manufacturing and services sectors in Q1 FY26, combined with steady growth in the agricultural sector, helped real gross value added (GVA) expand by 7.6 per cent over this period, it added.<\/p>\n

\u2018GDP growth remains driven primarily by domestic demand, with the share of private consumption in Q1 FY25 being the highest first-quarter share of consumption in nominal GDP in the past 15 years. The rationalisation of the GST structure will provide further impetus to consumption growth. The share of capital formation remained steady, driven by improved government capex,” according to the report.<\/p>\n

On the GST reforms, it said that recognising the need to strengthen domestic growth drivers amid these heightened external sector risks, the government has announced a rationalisation of the GST regime. This move is expected to lower the tax burden on consumers, boost consumption, and provide a cushion against tariff impacts. Additionally, it is likely to improve demand visibility for firms, enabling them to expand investment in additional capacities.<\/p>\n

Inflation is expected to remain well under control, with replenished reservoirs auguring well for the winter crop. Additionally, the revision in GST rates may lead to a one-time reduction in inflation over the next year.<\/p>\n

Despite trade and tariff-related headwinds, India\u2019s external sector has remained resilient. Strong service exports and remittances have offset the merchandise trade deficit, while gross FDI inflows continue to rise, underscoring India\u2019s appeal as an investment destination. Labour market momentum is expected to stay positive.<\/p>\n

\u2018$100,000 H-1B Visa Fee Causes Disruptions\u2019<\/strong><\/p>\n

The ministry, however, said the recent US imposition of a one-time fee of US$100,000 for all future H-1B visas cause disruptions, the impact of which\u2014particularly on the growths of future remittances and service trade surpluses\u2014will need close monitoring if the restrictions persist. India is also expanding its economic partnerships, signing a bilateral investment treaty with Israel and preparing a Comprehensive Economic Partnership Agreement with Oman to reduce duties, boost investment, and diversify trade beyond energy imports.<\/p>\n

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\"Mohammad<\/figure>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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First Published:<\/span><\/p>\n
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September 26, 2025, 18:16 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> India’s Economic Outlook Remains Broadly Optimistic Despite Global Woes: Finance Ministry Report<\/span><\/div>\n
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Last Updated:September 26, 2025, 18:18 IST India’s real GDP grew 7.8 percent YoY in Q1 FY26, driven by strong domestic demand, manufacturing, and services, according to the finance ministry’s latest Monthly Economic Review. GDP growth remains driven primarily by domestic demand, with the share of private consumption in Q1 FY25 being the highest first-quarter share…<\/p>\n","protected":false},"author":1,"featured_media":1165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-15661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/15661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=15661"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/15661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/1165"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=15661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=15661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=15661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}