NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion in the April to June period of fiscal 2026-27. Recent official statistics indicated that economic activity remained robust across manufacturing, services, consumption, and investment sectors. Modi described this growth rate as a “herculean feat” amid ongoing global economic challenges. He pointed to oil price shocks, supply chain disruptions, and broader uncertainty as key obstacles facing the economy. Additionally, he credited the resilience and efforts of India’s population for the country’s strong performance.
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 compared to ₹75.46 lakh crore in the same period last year. Nominal GDP experienced a 10.3% rise to ₹88.27 lakh crore from ₹80 lakh crore. Meanwhile, real gross value added increased 8.2% to ₹73.82 lakh crore. Nominal GVA grew 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
Manufacturing experienced a 9.2% growth from a year earlier, making it one of the key drivers of quarterly expansion. The financial, real estate, and professional services sectors also expanded by 12.1%. Agriculture, livestock, forestry, and fishing saw a growth of 3.6%. Household consumption rose by 7.1%, while gross fixed capital formation increased close to 12%. Investment now accounts for 34.3% of nominal GDP, up from 31.4% during the same quarter last year.
Manufacturing and investment boost economic momentum
Multiple industrial and demand indicators registered year-on-year growth during April to June. Production of capital goods increased by 15.2%, while consumption of finished steel grew by 8.3%. Cement production also rose by 8.9%, supporting signs of activity in construction and infrastructure sectors. The sales of commercial vehicles increased by 18.3%, with household vehicle registrations up by 15.9%. Additionally, government data showed exports of goods and services rising by 25.8%, while imports saw a 30.5% increase 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 approaches. The new framework was adopted in February 2026 to better reflect recent patterns in production, spending, and overall economic activity. Subsequently, the ministry integrated newer industrial production and producer price data into its national accounts for further GDP estimates.
Modi emphasizes economy’s resilience amid global uncertainties
Following the release of India’s first official GDP estimate for fiscal 2026-27, Modi highlighted the 7.8% growth rate while acknowledging external pressures impacting businesses and consumers during the quarter. Elevated energy costs can influence manufacturing, transportation, and household expenses across the economy. As India heavily depends on imported crude oil to meet domestic demand, supply chain disruptions can also impact industrial inputs and trade flows, adding operational challenges for companies reliant on overseas supplies.
The data from April to June showcased growth in several major sectors of India’s economy at the outset of the financial year. Manufacturing, services, agriculture, household consumption, and fixed investment all expanded compared to the previous year. The 7.8% GDP increase was accompanied by double-digit nominal growth and a rise in gross value added. Modi’s focus was on the headline growth and the economy’s resilience. These figures offer policymakers, businesses, and investors the first comprehensive overview of India’s economic performance in fiscal 2026-27.