Despite rising energy costs and rupee depreciation, India’s economic growth exceeds expectations

Golden Ten Data, June 5 – Despite rising energy costs due to the Iran war and a weakening rupee, India’s first-quarter economic growth exceeded expectations. The Ministry of Statistics and Programme Implementation stated on Friday that first-quarter GDP grew by 7.8%, surpassing the median forecast of 7.3%. Amid recent external shocks—including increased US tariffs and ongoing effects of the Iran war—the Indian economy remains under pressure and its outlook is still uncertain. On Friday, the Reserve Bank of India announced measures to attract foreign investment, such as expanding access to government bonds to encourage capital inflows and ease pressure on the rupee, while keeping interest rates unchanged. In addition, the government scrapped capital gains tax on bond investments by foreign investors to shield the economy from energy crisis shocks related to the Iran war.