India’s GDP expands 7.8% in June quarter, beating forecasts; RBI had flagged risks but held policy steady

India’s economy grew 7.8% in the June quarter, according to figures reported by CNBC, comfortably above a Reuters poll expectation of 7.1%. The growth profile was broad in services: the article points to strong performances in financial services, real estate, information technology and professional services. It also notes that while agriculture and allied sectors were weaker, manufacturing and services improved sharply in the quarter.

CNBC links the print to resilience in consumption and private activity. It says that higher-frequency indicators tracked by Barclays suggested only a minority—seven of 20—showed slower average growth versus the prior quarter, and that consumer demand remained “robust.” The article also highlights that manufacturing and service momentum is supported by indicators such as automobile sales and loan growth.

The update sits alongside an explicit warning from the Reserve Bank of India. The RBI had previously described the economy as “resilient” amid geopolitical uncertainty but expected growth to slow over the financial year, citing elevated and uncertain energy prices and supply-chain pressures. It also flagged El Niño risks for a deficient and uneven south-west monsoon, which could affect farm output and rural demand.

Inflation remains a relevant tension point. CNBC says inflation has climbed steadily for nine straight months to 4.45% in July, yet the RBI, unlike some Asian peers, did not raise interest rates in its August policy. Going forward, investors will likely watch whether inflation keeps tracking higher as growth stays strong, and whether RBI’s balance between growth support and inflation control shifts in upcoming meetings.