India GDP grows 7.8% in Q1: 5 factors that helped the economy hold up amid war and rain risks

India’s economy expanded 7.8% in Q1, helped by domestic consumption, infrastructure spending, services, manufacturing and farm support measures. The growth came even as higher oil prices, geopolitical tensions and rainfall concerns added pressure.

New Delhi: India’s economy grew 7.8% in the first quarter of the current financial year, a pace that keeps the country among the fastest-growing major economies. The number comes at a difficult time globally, with geopolitical tensions in West Asia, higher oil prices, supply disruptions and weather concerns creating fresh pressure.

At home, the risks were clear too. A stronger El Nino cycle had raised fears around rainfall and agricultural output, while expensive crude oil threatened to raise costs across transport, manufacturing and household spending. Even with these pressures, domestic demand, public spending, services and manufacturing helped keep activity moving.

1. Domestic consumption remained a major support

Private consumption makes up a large share of India’s GDP, close to 60% according to the context provided. That gives the economy a large internal market to fall back on when global demand slows.

Urban spending has remained an important part of this story. Consumers........

© News9Live