Economy & Trade
India GDP grows 7.8% despite Iran war costs
India's economy grew 7.8% in the April-June quarter from a year earlier, official data showed Monday, as domestic demand and services supported activity despite higher costs linked to the Iran war.
The statistics ministry said gross domestic product growth was below a revised 8.6% in the previous quarter. In a statement, the ministry said India's economy had “sustained growth momentum despite global headwinds”.
India depends heavily on imported oil and gas, making the economy exposed to higher global energy costs. The Iran war has raised energy costs and India's import bill, adding pressure on inflation.
The government has so far limited the effect on consumers through staggered fuel price rises. Consumption and income tax cuts last year have also helped domestic demand.
Update
Domestic demand and the services sector helped support growth.
The Iran war raised energy costs and India's import bill, according to the supplied account.
India's central bank had cut, then later raised, growth projections for the current fiscal year.
The government has limited and staggered fuel price rises, and earlier tax cuts helped support domestic demand.
Source note: AFP news report published on 31 August 2026 at 11:28:18 UTC.
Update
India's April-June growth was down from a revised 8.6% in the previous quarter.
India's statistics ministry said the economy had sustained growth momentum despite global headwinds.
Source note: AFP news report published on 31 August 2026 at 10:50:30 UTC.
Uncertainty notes
The supplied item says growth was above market expectations of 7.3%, but it does not identify the source of that expectation.
Source
AFP news report published on .