NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi lauded India’s 7.8% economic expansion in the April to June quarter of fiscal 2026-27. Recent official figures indicated robust activity across manufacturing, services, consumption, and investment sectors. Modi characterized this growth rate as a “herculean feat” amid global economic challenges. He pointed out issues like oil price shocks, supply chain disruptions, and broader uncertainty as hurdles faced by the economy. The Prime Minister also credited the resilience and efforts of India’s population.
India’s real gross domestic product hit ₹81.36 lakh crore in the first quarter, according to the Ministry of Statistics and Programme Implementation. This was up from ₹75.46 lakh crore in the same period last year. Nominal GDP grew by 10.3% to ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased by 8.2% to ₹73.82 lakh crore, while nominal GVA surged 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
Manufacturing sector expanded by 9.2% year-on-year, contributing significantly to quarterly growth. Financial, real estate, and professional services saw a 12.1% rise during this period. Agriculture, livestock, forestry, and fishing registered a growth of 3.6%. Household consumption climbed 7.1%, and gross fixed capital formation rose nearly 12%. Investment made up 34.3% of nominal GDP, compared to 31.4% in the same quarter of the previous fiscal year.
Manufacturing and investment bolster economic performance
Several key industrial and demand indicators also showed positive year-on-year growth in the April to June quarter. Capital goods output increased by 15.2%, and finished steel consumption grew by 8.3%. Cement production rose 8.9%, indicating activity in construction and infrastructure sectors. Sales of commercial vehicles went up by 18.3%, while household vehicle registrations increased by 15.9%. Additionally, government data revealed a 25.8% rise in exports of goods and services, with imports climbing 30.5% over the same period.
The Ministry of Statistics and Programme Implementation now assesses national output using a 2022-23 base year. This updated series replaced the previous 2011-12 base and incorporated new data sources and statistical methodologies. The new framework was adopted in February 2026, aiming to better reflect recent trends in production, spending, and overall economic activity. The ministry later integrated newer industrial production and producer price data into its national accounts calculations for subsequent GDP estimates.
Modi emphasizes resilience amid international uncertainties
Following the release of India’s initial GDP estimate for 2026-27, Modi highlighted the 7.8% growth rate, noting the external pressures impacting businesses and consumers during the quarter. Increased energy costs influence production, transportation, and household expenses across the economy. India’s heavy reliance on imported crude oil to satisfy domestic demand was also acknowledged. Supply chain disruptions can further affect industrial inputs and trade flows, adding operational pressures on companies dependent on overseas supplies.
The April to June data reflected growth across multiple vital sectors of India’s economy at the beginning of the fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the previous year. The 7.8% GDP growth occurred alongside double-digit nominal increases and stronger gross value added figures. Modi focused his remarks on the headline growth and the economy’s resilience, providing policymakers, businesses, and investors with an initial comprehensive measure of India’s economic performance for fiscal 2026-27.