The Indian economy recorded a GDP growth of approximately 7.8% year-on-year in the April to June quarter of FY26, surpassing consensus estimates. Growth drivers include robust private consumption, greater public-investment momentum and improving manufacturing output. Economists warn of global headwinds and inflation pressures but view the start of the year as positive. The strong expansion could support corporate earnings and domestic-equity trends. Policy-makers will now monitor inflation, external demand and fiscal discipline closely.