India Q1 GDP surges 7.8% on investment boom, services strength; beats forecasts

India's economy expanded by a robust 7.8% in the first quarter of FY27, surpassing the central bank's 7% projection. The growth was driven by a surge in investment, with gross fixed capital formation climbing 11.9%, and a resilient services sector which grew 10%. However, the agricultural sector contracted by 2.4%, while manufacturing posted a strong 9.2% expansion, prompting some analysts to revise their full-year growth forecasts upwards to the 7-7.5% range.