Gross domestic product grew 7.8% year on year, according to government data. The result exceeded the 7.1% forecast in a Reuters poll and the Reserve Bank of India's 7% projection, although growth slowed from a revised 8.6% in the preceding quarter.
The expansion was supported by strong investment and manufacturing activity alongside consumer demand. Manufacturing, electricity, gas and financial services all recorded notable growth.
Investment is emerging as an especially important component of India's expansion. Private-sector spending has increased in areas including data centres, power and metals, suggesting that the country's growth cycle is increasingly being supported by corporate capital expenditure rather than government spending alone.
The result is significant because India is expanding against a difficult global backdrop. Higher energy prices, geopolitical tensions and disruptions to international trade have created additional risks for emerging markets.
Yet domestic demand has provided India with a degree of insulation. A relatively stable monsoon season could also support rural consumption, while easing inflation may provide additional room for household spending.
The strong quarterly performance has prompted some economists to raise their full-year growth expectations towards 7%.
However, maintaining that pace will require continued investment and productivity improvements. India's infrastructure requirements remain substantial, while global energy and trade conditions could still affect the outlook.
The latest figures nevertheless strengthen the case for India as an increasingly important destination for international capital.
Aldrenor Assessment: India's growth story is moving beyond consumption alone. The acceleration in manufacturing and private investment suggests the country is building a broader expansion cycle with increasing implications for global supply chains and capital allocation.
