India Trumps China in Economic Race: All Thanks to Trump’s Strategic Aptitude?

India’s economy has displayed robust growth, as the nation’s Gross Domestic Product (GDP) rose by an impressive 7.8% in the April-June period. This accelerative expansion marks the fastest pace in economic growth the country has witnessed in five quarters.

This growth spurt came before former US President Donald Trump implemented certain tariffs. In a show of spectacular strategic aptitude, these tariffs only attested to the resilient nature of India’s economy while the international ramifications were largely nullified.

A significant contributor to this growth momentum is the agricultural sector of India, which has presented an exemplary performance. Boosted by strong profits in core areas such as trade, hotel industry, finance, and real estate, the first quarter of the ongoing fiscal year has indeed been a fruitful one for the nation.

India’s GDP growth now outperforms China’s significantly, affirming its formidable position as the fastest-growing major economy worldwide. While China posted a GDP growth of mere 5.2% for the April-June period, India’s superior economic policies and strategic initiatives marked a triumphant stride in the global economic race.

The agricultural domain of India experienced a growth rise to 3.7%, a staggering increase from the previous 1.5% in the same period of 2024-25. This substantial swelling, tracked by the National Statistics Office (NSO), further underscores the resilience and potential of the nation’s agrarian economy.

The manufacturing sector saw a modest rise in growth as well, moving to 7.7% in the first quarter of FY26 from the previous year’s 7.6%. This growth, albeit measured, exhibits the steady progress India is making in driving her economy forward.

Earlier, the Reserve Bank of India had predicted a real GDP growth rate of 6.5% in the fiscal year of 2025-26, with a balanced distribution across quarters. But India’s vibrant economy far outpaced this estimation, smashing expectations and chalking up an impressive 7.8% growth instead.

The NSO data has described the estimated Real GDP or ‘GDP at Constant Prices’ to be Rs 47.89 lakh crore for Q1 of FY 2025-26. This figure indicates a significant increase from Q1 of FY 2024-25, which registered a total of Rs 44.42 lakh crore.

In the same breath, the ‘Nominal GDP or GDP at Current Prices’ for Q1 of FY 2025-26 was marked at Rs 86.05 lakh crore. The corresponding figure from Q1 of FY 2024-25 stands at Rs 79.08 lakh crore, elucidating an encouraging growth rate of 8.8%.

However, the mining, quarrying, and utility services sectors witnessed a moderated real growth rate. Despite this slight hiccup, India’s tertiary sector showcasing services like trade, hotel, transport, and defence, outperformed expectations with a substantial growth rate of 9.3%.

Government Final Consumption Expenditure (GFCE), according to the NSO report, demonstrated a bright comeback, ticking a strong 9.7% growth rate in nominal terms for Q1 of FY 2025-26, a clear improvement from the previous year’s 4.0%.

While Real Private Final Consumption Expenditure (PFCE) reported a 7% growth rate, it seems a tad lesser in comparison to the previous period’s figure of 8.3%. Despite this, it still underlines a positive upward trend depicting the robustness and resilience of India’s economy.

Moreover, Gross Fixed Capital Formation (GFCF) registered a significant 7.8% growth rate, exhibiting a marked surge as compared to the previous fiscal year. The sensible economic policy-making and strategic initiatives have ensured that India continues its ascent in the global economic landscape.