NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi lauded India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. Recent official figures demonstrated that economic momentum remained steady across manufacturing, services, consumption, and investment sectors. During this period marked by global economic challenges, Modi described the growth rate as a “herculean feat,” citing oil price shocks, supply chain disruptions, and widespread uncertainty as significant hurdles. He also credited the perseverance and efforts of India’s population for the achievement.
In the first quarter, India’s real gross domestic product (GDP) reached ₹81.36 lakh crore, as reported by the Ministry of Statistics and Programme Implementation. This compares to ₹75.46 lakh crore recorded in the same quarter last year. Nominal GDP grew by 10.3% to ₹88.27 lakh crore from ₹80 lakh crore. Meanwhile, real gross value added (GVA) increased 8.2% to ₹73.82 lakh crore, with nominal GVA rising 11.5% to ₹80.53 lakh crore, reflecting higher output measured at current prices.
Manufacturing saw a 9.2% year-on-year increase, making it a key contributor to the quarterly expansion. The financial, real estate, and professional services sectors expanded by 12.1% during this period. Agriculture, livestock, forestry, and fishing grew by 3.6%. Household consumption rose by 7.1%, and gross fixed capital formation nearly doubled with an increase of approximately 12%. Investment accounted for 34.3% of nominal GDP, up from 31.4% in the same quarter of the previous financial year.
Manufacturing and investment drive economic momentum
Several key industrial and demand indicators also showed year-on-year improvements in the April to June quarter. Capital goods production grew by 15.2%, and consumption of finished steel increased by 8.3%. Cement production advanced 8.9%, providing further evidence of activity within construction and infrastructure sectors. The sales of commercial vehicles rose by 18.3%, and household vehicle registrations went up by 15.9%. Data from the government also indicated exports of goods and services increased by 25.8%, while imports jumped 30.5% over the same period.
The Ministry of Statistics and Programme Implementation now assesses national output using a base year of 2022-23. This updated series replaced the earlier 2011-12 base, incorporating new data sources and revised statistical methods. The revised framework was adopted in February 2026, aiming to better reflect recent trends in production, spending, and economic activity. Additionally, the ministry integrated new industrial production and producer price data into its subsequent GDP calculations for improved accuracy.
Modi emphasizes resilience amid global uncertainties
Following the release of India’s first official GDP estimate for the 2026-27 fiscal year, Modi highlighted the 7.8% growth rate while acknowledging the external pressures affecting businesses and consumers during the quarter. Rising energy prices influence production, transportation, and household expenses across the economy. As India depends heavily on imported crude oil to satisfy domestic demand, supply chain disruptions can impact industrial inputs and trade flows, increasing operational challenges for companies reliant on overseas supplies.
The data for April to June demonstrated positive growth across major sectors of India’s economy at the start of the new financial year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the same period last year. The 7.8% increase in GDP was accompanied by double-digit nominal growth and a stronger gross value added figure. Modi focused on the headline growth and economic resilience, with these figures providing policymakers, businesses, and investors their first broad snapshot of India’s economic performance in fiscal 2026-27.