India's Economy Surges with 8% GDP Growth in Q1, Driven by Infrastructure Spending and Services Sector

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, concerns arise over a drier than normal monsoon season, which could restrain future growth. India's Chief Economic Adviser maintains a 6.5% growth forecast for the full year, but economists warn that dry conditions may impact the agriculture sector and consumption growth. Despite policy tightening by the Reserve Bank of India, the services sector, trade, transport, finance, and real estate have shown significant growth rates. Construction activity also performed well. However, the risk of inflation remains due to rising commodity prices, particularly in the food sector.