India's economy grew by a robust 7.8% in the first quarter of the fiscal year, maintaining momentum into subsequent months. The Reserve Bank of India predicts a 6.8% growth in the second quarter, slightly exceeding expectations. High-frequency indicators, like manufacturing and services growth, rising auto sales, and increased steel and cement production, indicate a strong economic pulse.
However, challenges include contracting exports and a need for broader-based investments. More people, especially women, are joining the workforce, yet a surge in self-employment suggests a shortage of quality jobs. Rural demand lags behind urban markets, and heightened household borrowing raises concerns.