Mumbai: India’s strong services activity has helped GDP growth comfortably beat expectations for the second quarter in a row, rising to an impressive high of 7.8% for April-June 2025. The swift growth in the first quarter of the current financial year further consolidates India’s position as the world’s fastest growing major economy.

Currently the world’s fourth-largest economy, India is on track to become the third-largest by 2030 with a projected $7.3 trillion GDP. This momentum is powered by decisive governance, visionary reforms, and active global engagement. Notably, growth is accelerating, with real GDP expected to rise by 7.8% in Q1 FY 2025-26, up from 6.5% a year earlier.

The ascent is powered by strong domestic demand and transformative policy reforms, making India a prime destination for global capital. With easing inflation, higher employment, and buoyant consumer sentiment, private consumption is expected to further drive GDP growth in the coming months.

Mr. Kirit Bhansali, Chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC) said, “India’s 7.8% GDP growth in the first quarter of FY 2026, despite global headwinds like the recent US tariff, reflects the resilience of our economy and the visionary leadership of Prime Minister Mr. Narendra Modi. Rising domestic demand for gems and jewellery is creating a strong cushion. This demand will help to ward off some impact out of the 50% import tariff on diamonds that has been put up by the USA.

India has now emerged as one of the leading jewellery consuming markets globally, with diamond jewellery alone accounting for USD 8.5 billion — nearly 10% of world demand. With rising incomes, a young aspirational population, and growing investor confidence, we believe India’s share of global diamond consumption will rise significantly, from the current 10% to as much as 30% in the coming years.

This growth story reinforces India’s position not only as the world’s diamond manufacturing hub but also as one of the most promising consumer markets, offering immense opportunities for global trade and long-term investment.”