NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi praised India’s 7.8% economic growth in the April to June quarter of fiscal 2026-27. The latest official data showed that economic activity remained firm across manufacturing, services, consumption and investment. Modi described the growth rate as a “herculean feat” during a period marked by global economic pressures. He cited oil price shocks, supply chain disruptions and wider uncertainty among the challenges facing the economy. The Prime Minister also credited the resilience and efforts of India’s people.
India’s real gross domestic product reached ₹81.36 lakh crore during the first quarter, according to the Ministry of Statistics and Programme Implementation. The figure stood at ₹75.46 lakh crore in the same quarter a year earlier. Nominal GDP increased 10.3% to ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added rose 8.2% to ₹73.82 lakh crore. Nominal GVA climbed 11.5% to ₹80.53 lakh crore, reflecting higher output measured at current prices.
Manufacturing expanded 9.2% from a year earlier, making it one of the stronger contributors to quarterly growth. Financial, real estate and professional services grew 12.1% during the period. Agriculture, livestock, forestry and fishing recorded growth of 3.6%. Household consumption rose 7.1%, while gross fixed capital formation increased by nearly 12%. Investment accounted for 34.3% of nominal GDP, compared with 31.4% in the corresponding quarter of the previous financial year.
Manufacturing and investment strengthen economic activity
Several industrial and demand indicators also posted year-on-year gains during the April to June period. Capital goods production increased 15.2%, while finished steel consumption grew 8.3%. Cement production advanced 8.9%, adding to evidence of activity in construction and infrastructure-related sectors. Commercial vehicle sales rose 18.3%, while household vehicle registrations increased 15.9%. Government data also showed goods and services exports rising 25.8%. Imports increased 30.5% over the same three-month period.
The Ministry of Statistics and Programme Implementation now measures national output using a 2022-23 base year. The revised series replaced the previous 2011-12 base and introduced updated data sources and statistical methods. Authorities began using the new framework in February 2026. The changes aim to reflect more recent patterns across production, spending and economic activity. The ministry later incorporated newer industrial production and producer price information into its national accounts calculations for subsequent GDP estimates.
Modi points to resilience during global uncertainty
Modi’s comments followed the release of the first official GDP estimate for India’s 2026-27 financial year. He highlighted the 7.8% growth rate while referring to external pressures that affected businesses and consumers during the quarter. Higher energy costs can influence production, transportation and household expenses across the economy. India relies heavily on imported crude oil to meet domestic demand. Supply chain disruptions can also affect industrial inputs and trade flows, adding to operating pressures for companies that depend on overseas supplies.
The April to June data showed growth across several major areas of India’s economy at the start of the financial year. Manufacturing, services, agriculture, household spending and fixed investment all expanded from a year earlier. The 7.8% GDP increase also came alongside double-digit nominal growth and stronger gross value added. Narendra Modi focused his response on the headline expansion and the economy’s resilience. The figures give policymakers, businesses and investors the first broad measure of India’s economic performance in fiscal 2026-27.
