India's economic growth is estimated to surge past most initial private and official forecasts, backed by robust domestic demand and government spending, helping New Delhi cope with punitive US tariffs. "(This growth) reflects that despite rising global uncertainties India continued to perform well," Sakshi Gupta, economist at HDFC Bank, said. Private consumption, which accounts for about 60 per cent of GDP, was seen expanding by 7 per cent year-on-year compared to a 7.2 per cent expansion last fiscal year. The United States has imposed 50 per cent tariffs on some of India's key exports to punish it for its purchases of Russian oil. However, the strong growth estimate is possibly due to a limited hit on India’s exports so far, helping steady manufacturing growth, said Madhavi Arora, economist at Emkay Global.

Source: The Telegraph January 07, 2026 13:01 UTC