India's economy grows at 7.8%, smashing expectations

Government spending springs back, but US tariff impact still to come

20250829 India GDP2

People shop at a supermarket in Amritsar, India, on May 9. © Reuters

SOUMYAJIT SAHA

MUMBAI -- India's economy grew 7.8% in the quarter that ended in June, rising from a 7.4% expansion in the preceding quarter, as government spending roared back, supported by strong growth in the financial, real estate and professional services sectors.

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