NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% economic growth during the April to June quarter of fiscal 2026-27, describing it as a “herculean feat” in light of official figures demonstrating sustained expansion across key sectors. Modi emphasized that this achievement underscores the collective strength and resilience of India’s population. He also acknowledged the impact of oil price shocks, supply chain disruptions, and international uncertainty during the period.
The Ministry of Statistics and Programme Implementation reported that the real gross domestic product (GDP) was ₹81.36 lakh crore for the quarter, a rise from ₹75.46 lakh crore in the same quarter last year. Nominal GDP reached ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. Meanwhile, real gross value added (GVA), another key indicator of economic activity, grew 8.2% to ₹73.82 lakh crore. Nominal GVA also saw an 11.5% increase, reaching ₹80.53 lakh crore.
Manufacturing sector experienced a 9.2% growth during this period, while financial, real estate, and professional services expanded by 12.1%. Agriculture, livestock, forestry, and fishing grew 3.6%. Household consumption remained a significant driver of domestic demand, rising 7.1%. Investment indicators also showed strength, with gross fixed capital formation increasing nearly 12% compared to the previous year. Its share of nominal GDP reached 34.3%, up from 31.4% in the same quarter last year.
Broad-based growth driven by investment and manufacturing activity
The positive Q1 results are supported by several activity indicators showing steady year-on-year improvements. Capital goods output rose by 15.2%, with finished steel consumption climbing 8.3%. Cement production grew 8.9%, and sales of commercial vehicles increased 18.3%. Household vehicle registrations also went up by 15.9%. Additionally, government data revealed exports of goods and services increased by 25.8%, while imports surged 30.5% during April to June.
India has transitioned to calculating national accounts using a 2022-23 base year, replacing the previous 2011-12 framework. The statistics ministry introduced this revised series in February 2026, incorporating new data sources and updated methodologies. Later updates included newer industrial production figures and producer price data. The August release of revised figures placed real GDP growth for fiscal 2025-26 at 7.8%, compared to the earlier provisional estimate of 7.7%.
Modi attributes resilience to global economic pressures
Linking the recent GDP figures to India’s capacity to sustain economic activity amid challenging global conditions, Modi highlighted the nation’s resilience. His remarks came after the August 31 release of the quarterly national accounts. He specifically pointed out the influence of rising oil prices and supply chain issues as key challenges faced by the economy. As a major oil importer, energy prices are crucial to inflation, trade, and overall production costs impacting both businesses and consumers.
These latest figures represent the first official GDP assessment for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation is scheduled to publish the second quarter GDP estimates on November 30, covering July through September. The initial quarter’s data showcased growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s emphasis remained on the 7.8% headline growth rate and the economy’s resilience, positioning this national output figure as a focal point of his commentary.