NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi applauded India’s 7.8% economic growth during the April to June quarter of fiscal 2026-27. Official figures indicated that activity remained robust across manufacturing, services, consumption, and investment sectors. Modi referred to this growth rate as a “herculean feat” amidst a backdrop of global economic challenges. He pointed out oil price shocks, supply chain disruptions, and broader uncertainty as key hurdles facing the economy. Additionally, the Prime Minister credited the resilience and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore in the first quarter. This compares to ₹75.46 lakh crore recorded in the same period last year. Nominal GDP saw an increase of 10.3%, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added grew by 8.2% to ₹73.82 lakh crore. Meanwhile, nominal GVA rose by 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
Manufacturing experienced a 9.2% expansion year-on-year, contributing significantly to quarterly growth. The financial, real estate, and professional services sectors grew by 12.1% during this period. The agriculture, livestock, forestry, and fishing sectors posted a growth of 3.6%. Household consumption increased by 7.1%, while gross fixed capital formation grew by nearly 12%. Investment made up 34.3% of nominal GDP, up from 31.4% in the same quarter of the previous fiscal year.
Manufacturing and investment propel economic momentum
Various industrial and demand indicators also reported year-on-year improvements in the April to June timeframe. Capital goods production went up by 15.2%, and consumption of finished steel increased by 8.3%. Cement output rose by 8.9%, indicating ongoing activity in construction and infrastructure sectors. Commercial vehicle sales saw an 18.3% rise, with household vehicle registrations climbing 15.9%. Data from the government also revealed exports of goods and services grew by 25.8%, while imports rose by 30.5% over the same three months.
The Ministry of Statistics and Programme Implementation has transitioned to measuring national output using a 2022-23 base year. This revised series replaced the earlier 2011-12 base, incorporating updated data sources and new statistical methodologies. The new framework began use in February 2026, aiming to better reflect recent trends in production, expenditure, and overall economic activity. Subsequently, the ministry integrated more recent industrial production and producer price data into its GDP estimations for subsequent national accounts.
Modi emphasizes resilience amid global economic pressures
Following the release of India’s first official GDP estimate for the fiscal year 2026-27, Modi highlighted the 7.8% growth rate while acknowledging external factors that impacted businesses and consumers during the quarter. Rising energy costs can influence production, transportation, and household expenses across the country. India’s reliance on imported crude oil to satisfy domestic demand makes it susceptible to oil price fluctuations. Supply chain disruptions further affect industrial inputs and trade flows, adding to operational challenges faced by companies dependent on overseas supplies.
The data from April to June shows positive growth across key sectors of India’s economy at the beginning of the new fiscal year. Manufacturing, services, agriculture, household expenditure, and fixed investment all expanded compared to the previous year. The 7.8% increase in GDP coincided with double-digit nominal growth and an increase in gross value added. Modi’s remarks focused on the headline figure and the economy’s capacity to withstand external shocks. These figures offer policymakers, businesses, and investors the initial comprehensive indicator of India’s economic performance for fiscal 2026-27.