NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi lauded India’s 7.8% economic growth during the April to June quarter of fiscal 2026-27. The official figures revealed sustained momentum across manufacturing, services, consumption, and investment sectors. Describing the growth rate as a “herculean feat,” Modi emphasized it was achieved amid worldwide economic challenges. He pointed out oil price shocks, supply chain disruptions, and increased uncertainty as primary hurdles for the economy. The Prime Minister also praised the perseverance and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product hit ₹81.36 lakh crore in the first quarter, up from ₹75.46 lakh crore in the same period last year. Nominal GDP saw a 10.3% rise to ₹88.27 lakh crore from ₹80 lakh crore. Meanwhile, real gross value added increased by 8.2% to ₹73.82 lakh crore. Nominal GVA climbed 11.5% to ₹80.53 lakh crore, indicating higher output at current prices.
Manufacturing grew by 9.2% from the previous year, making it one of the key drivers of quarterly growth. The finance, real estate, and professional services sector expanded by 12.1%. Agriculture, livestock, forestry, and fishing registered 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 prior fiscal year.
Strengthening manufacturing and investment bolster economic activity
Various industrial indicators and demand metrics also showed positive year-on-year growth during April to June. Capital goods production went up by 15.2%, with finished steel consumption increasing by 8.3%. Cement production grew by 8.9%, further supporting activity in construction and infrastructure sectors. Sales of commercial vehicles surged by 18.3%, while household vehicle registrations increased by 15.9%. Data from the government also revealed exports of goods and services rising by 25.8%, 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 new series, replacing the earlier 2011-12 base, incorporates updated data sources and refined statistical methods. The authorities adopted this framework in February 2026 to better reflect recent trends in production, expenditure, and overall economic activity. Subsequently, the ministry integrated newer industrial production figures and producer price data into its national accounts for future GDP estimates.
Modi highlights resilience amid global uncertainties
Following the release of India’s initial GDP estimate for the 2026-27 fiscal year, Modi underscored the 7.8% growth figure while addressing external factors influencing the economy. He noted that rising energy costs can impact production, transportation, and household expenses across sectors. India’s heavy reliance on imported crude oil to satisfy domestic demand, coupled with supply chain disruptions, can also affect industrial inputs and trade flows, creating additional operational pressures for companies dependent on overseas supplies.
The data for April to June indicate growth across several main sectors of India’s economy at the start of the new fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the previous year. The 7.8% GDP increase coincided with double-digit nominal growth and an upswing in gross value added. Modi’s focus was on the headline figures and the economy’s ability to withstand global headwinds. These numbers offer policymakers, businesses, and investors the first comprehensive snapshot of India’s economic performance for the fiscal 2026-27 period.