India’s economy grew steadily in Q1 FY26, driven by services, strong rural demand, low inflation, and robust agriculture output.

• Services sector led Q1 FY26 growth, supported by manufacturing, construction, and strong high-frequency economic indicators.
• Southwest monsoon boosted kharif sowing, reservoir levels, and fertiliser supply, raising hopes for a strong rural recovery.
• CPI inflation dropped to 2.1% in June 2025, aided by falling food prices; WPI entered deflation at -0.1%.