India GDP Growth Likely Eased to 7.2 Percent in Q1 2026
Economists polled by Reuters expect India's economic expansion to have moderated to 7.2% in the January-March quarter due to softer industrial activity and global trade disruptions. While government spending remains strong, analysts warn that rising oil prices and external shocks are weighing on the private investment needed for job creation.
India's GDP growth likely slowed to 7.2% in the first quarter of 2026 as weakening external demand cooled industrial output. The median forecast from 45 economists polled by Reuters marks a decline from the 7.8% expansion recorded in the previous quarter. For investors, the data signals a transition toward a more uneven growth profile despite the nation's status as the world's fastest-growing major economy.
### External Shocks Pressure Manufacturing A combination of higher tariffs from the United States and rising energy costs has tested economic resilience. The conflict involving Israel and Iran pushed crude oil prices higher, adding margin pressure to Indian manufacturers. These global disruptions have contributed to slower manufacturing volumes and weaker exports during the January-March period.
