NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s economic expansion of 7.8% in the April to June quarter of fiscal 2026-27. Recent official figures demonstrated sustained strength across sectors including manufacturing, services, consumer spending, and investment. Modi called this growth rate a “herculean feat,” especially amid global economic challenges. He pointed to oil price shocks, supply chain interruptions, and broader uncertainty as the main hurdles confronting the economy. The Prime Minister also attributed the resilience and dedication of India’s population for the positive results.
During the first quarter, India’s real gross domestic product reached ₹81.36 lakh crore, according to the Ministry of Statistics and Programme Implementation. This figure was ₹75.46 lakh crore in the same period last year. Nominal GDP saw a 10.3% rise, reaching ₹88.27 lakh crore from ₹80 lakh crore. The real gross value added increased by 8.2% to ₹73.82 lakh crore. Meanwhile, nominal GVA jumped 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
Manufacturing grew by 9.2% year-on-year, making it one of the key drivers of the quarterly growth. The financial, real estate, and professional services sectors expanded by 12.1% during this period. Agriculture, livestock, forestry, and fishing posted a growth rate of 3.6%. Household consumption rose by 7.1%, and gross fixed capital formation increased almost 12%. Investment contributed 34.3% to nominal GDP, up from 31.4% in the same quarter of the previous financial year.
Manufacturing and investment bolster the economy
Various industrial and demand indicators also showed year-on-year improvements in the April-June period. Production of capital goods increased by 15.2%, with finished steel consumption rising 8.3%. Cement output grew by 8.9%, indicating activity in construction and infrastructure sectors. Sales of commercial vehicles jumped 18.3%, and household vehicle registrations rose 15.9%. Additionally, government data revealed exports of goods and services increased by 25.8%, while imports grew by 30.5% over the same three months.
The Ministry of Statistics and Programme Implementation now assesses national output based on a 2022-23 base year. This updated series replaced the previous 2011-12 base, incorporating new data sources and statistical approaches. The government began applying this revised framework in February 2026. These updates aim to better reflect current trends across production, expenditure, and overall economic activity. Subsequently, the ministry integrated newer industrial production and producer price data into its national accounts for future GDP estimates.
Modi emphasizes resilience amidst global economic challenges
Following the release of India’s official GDP estimate for fiscal 2026-27, Modi underscored the 7.8% growth rate while acknowledging external pressures that impacted businesses and consumers during the quarter. Rising energy costs, especially due to reliance on imported crude oil, influence production, transportation, and household expenses nationwide. Disruptions in supply chains also impact industrial inputs and trade, increasing operational difficulties for companies dependent on overseas supplies.
The data for April to June showed positive momentum across key sectors of India’s economy at the start of the fiscal year. Manufacturing, services, agriculture, household expenditure, and fixed investment all expanded compared to the previous year. The 7.8% increase in GDP was accompanied by double-digit nominal growth and a rise in gross value added. Modi emphasized the headline figure and the economy’s overall resilience, considering current global uncertainties. These statistics serve as the initial comprehensive indicator of India’s economic performance for fiscal 2026-27, providing valuable insights for policymakers, businesses, and investors.