Garg, speaking on the sidelines of the Kautilya Economic Conclave, said the economy had retained its resilience after expanding 7.8% in the first quarter of FY27, while activity across manufacturing and services and continued capital spending provided further signs of strength.
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“The first quarter growth rate was anyway at 7.8 per cent. And we are seeing the continued resilience of the economy,” Garg said.
Several leading ratings agencies and research firms, including S&P Global Ratings and Fitch Ratings, have revised their India growth projections upwards in recent weeks following the stronger-than-expected first-quarter performance.
Garg said the revisions were consistent with the broader picture emerging from corporate earnings and investment activity, including capital expenditure by private companies.
“Government investment was anyway high. And the other sectors too, whether you look at much of the manufacturing sectors or the service sectors, if you look at some of the service sector growth rates, they have been extremely positive,” he said.
Global forecasts catch up with domestic momentum
The MoSPI secretary said the improvement in international growth estimates reflected the positive momentum visible in the Indian economy over recent months and through the first quarter.
“So I think it’s the positivity which has been seen over the past few months, over the first quarter and beyond, which is now getting reflected in the revisions that are being made by different international agencies,” he said.
The upward revisions come after India’s 7.8% first-quarter expansion, which was stronger than the expectations of several forecasters and underscored the strength of domestic economic activity.
Also read: India GDP forecast stays at 7%, uncertainty range remains wide: Economist Arvind Virmani
Oil shock risks contained by policy response
Garg also pointed to the risks posed by tensions in West Asia, particularly through their potential impact on global crude oil prices, but said government measures had helped cushion the Indian economy against external shocks.
He said the response had involved not just government intervention but also adjustments by households and the private sector to changing external conditions.
“…I think that’s because of the number of interventions that have been done by the government to ensure that there is no adverse effect of the global oil shocks that are there or the other activities,” Garg said.
He said the economy’s resilience in the face of geopolitical and commodity-price risks reflected the combined impact of government measures and responses from households and businesses.
(With inputs from ANI)
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