India's economy grew 7.8% in June quarter, beating expectations
India's economy surprised everyone by growing 7.8% in the June quarter, beating expectations and prompting analysts to raise their forecasts for the year ahead.
CLSA's Nikhil Gupta now expects 6.3% growth for FY26 (up from 6.1%), while Citi's Samiran Chakraborty bumped his estimate to 7.1%.
Citi, CLSA raise FY26 growth estimates
Gupta credits this jump to early government spending and more investments, plus people spending a bit more despite weaker exports.
Chakraborty points out that services are booming, but notes that past unseasonal rains affected Q1 industrial activity, while possible GST changes and US tariffs could shake things up.
Both analysts say it's smart not to get too carried away—agriculture is still struggling, and CLSA expects rate cuts from the RBI might only come late next year if challenges continue, while Citi expects a long-hold.