India's Economy Surges with 8% GDP Growth in Q1, Despite Monsoon Concerns

India's economy grew at its fastest pace in a year in the April-June quarter, with GDP expanding by 7.8% on an annual basis, driven by strong services activity and robust demand. However, a drier than normal monsoon season could pose a risk to future growth. Despite policy tightening by the Reserve Bank of India, the services sector and construction activity showed strong growth. Economists cautioned that dry conditions may impact the agriculture sector and constrain spending, while retail inflation in July reached its highest level in 15 months due to rising vegetable and cereals prices.