The Indian gross domestic product expanded by 7.8% from the previous year in the three months to June of 2025, accelerating from the 7.4% in the previous period to mark the sharpest growth rate in five quarters and beat market expectations of a 6.6% increase. The result indicated that the Indian economy extended its period of traction following a slowdown in the second half of calendar 2024, supported by stronger consumer spending as inflation slowed and improved households' purchasing power. Private consumption expanded by 7% annually in the period, while government expenditure jumped by 7.4% and gross fixed capital formation expanded by 7.8%. In the meantime, net external demand contributed negatively to the GDP amid tariff threats by the US government, with imports surging by 10.9% annually despite softer fuel prices, while exports expanded a lower 6.3%.