<h1>India's 7.8% Q1 GDP Growth Seen Driven by Reforms, Fiscal Prudence, Strong Domestic Demand and Reviving Private Capex</h1> India's Q1 GDP growth of 7.8% is attributed by industry groups to a decade of government reforms and fiscal prudence, with strong domestic demand, resilient services and manufacturing, and rising government expenditure cited as key drivers. Trade associations highlighted recent income-tax relief, a 100-basis-point policy-rate easing and planned GST adjustments as supportive of consumption, while new project announcements suggest a revival in private capital expenditure that could spur employment. Members warned of export risks from reciprocal US tariffs but expressed confidence the economy can sustain near-7% annual growth amid continued reform and state-central collaboration.