Kolkata (West Bengal) [India], August 31 (ANI): Federation of Indian Chambers of Commerce and Industry (FICCI) president Harsha Vardhan Agarwal welcomed the gross domestic product (GDP) growth figures in the first quarter of FY26 as the Indian economy clocked a 7.8 per cent, beating estimates.

Speaking to ANI, Agarwal highlighted that income tax relief and repo-rate reduction by the Reserve Bank of India were among several other factors for the GDP growth.

'Reserve Bank of India's expectation was that the economy would grow by 6.5 per cent in the first quarter. So yes, from that perspective, it's really good. I think some of the reasons which is driving this growth are income tax relief, which was announced in the budget, apart from that, the repo-rate reduction by the RBI,' he said.

Real GDP has been estimated to grow by 7.8 per cent in Q1 of FY 2025-26 over the growth rate of 6.5 per cent during Q1 of FY 2024-25. Nominal GDP has witnessed a growth rate of 8.8 per cent in Q1 of FY 2025-26.

FICCI president also said that a robust economy will help the nation fight the US tariffs.

Elaborating on the impact of tariffs, he said, 'From the perspective of overall GDP growth, it might not be substantial. But yes, some of the sectors which might have a major impact, like textiles, gems and jewellery, and leather goods. There will be an impact, but I think the government is looking at supporting industries from whatever angle they can.'

He also welcomed the announcement regarding GST reforms made by Prime Minister Narendra Modi in his Independence Day speech.

'The GST announcement is a very welcome move. Apart from that, some more structural reforms will really help the economy grow faster for many years to come,' he said.

Meanwhile, on August 15, while addressing the nation from the ramparts of the Red Fort, Prime Minister Narendra Modi announced 'next generation' GST reforms for the country.

Shortly after, government sources said that the Centre is proposing to scrap the current slab of 12 per cent and 28 per cent GST rates and keep only 5 per cent and 18 per cent GST rates. (ANI)