India's economy witnessed its swiftest growth in a year during the April-June quarter, primarily propelled by the services and manufacturing sectors. Economists anticipate GDP growth of 7.7% for the quarter, an upturn from 6.1% in the previous one, marking the most rapid expansion since April-June 2022.
Lower commodity prices bolstered manufacturers' margins, helping offset the impact of cumulative interest rate hikes since May 2022. India's services sector, constituting over half of its GDP, sustained vigorous growth, contributing to the country's resilience against global economic slowdowns. However, economists predict a potential cooling of growth due to factors like recent rainfall patterns affecting agriculture and global slowdowns influencing exports.