NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has applauded India’s 7.8% economic growth in the April to June quarter of fiscal 2026-27. He described this achievement as a “herculean feat” following official data that indicated ongoing expansion in key parts of the economy. Modi emphasized that the results reflect the collective strength and resilience of India’s population. He also acknowledged challenges during the period, such as oil price shocks, supply chain disruptions, and global uncertainty.
The Ministry of Statistics and Programme Implementation reported real gross domestic product at ₹81.36 lakh crore for the quarter. This compares with ₹75.46 lakh crore during the same period last year. Nominal GDP reached ₹88.27 lakh crore, marking a 10.3% increase from ₹80 lakh crore. Real gross value added, which measures economic activity, grew 8.2% to ₹73.82 lakh crore. Nominal GVA rose 11.5% to ₹80.53 lakh crore.
Manufacturing experienced a 9.2% growth, while financial, real estate, and professional services expanded by 12.1%. Agriculture, livestock, forestry, and fishing grew 3.6%. Household consumption rose 7.1%, continuing to be a key driver of domestic demand. Investment also improved, with gross fixed capital formation increasing nearly 12% from a year earlier. Its share of nominal GDP increased to 34.3%, up from 31.4% last year.
Growth Driven by Investment and Manufacturing
Several activity indicators showed positive year-on-year growth in the first quarter. Capital goods production increased 15.2%, and finished steel consumption grew 8.3%. Cement production rose 8.9%, and sales of commercial vehicles jumped 18.3%. Registrations of household vehicles went up by 15.9%. The government’s data also revealed a 25.8% rise in exports of goods and services, while imports increased by 30.5% during April to June.
India now uses a 2022-23 base year for its national accounts, replacing the older 2011-12 framework. The statistics ministry introduced this revised series in February 2026, utilizing new data sources and updated methods. Later, it incorporated newer industrial production and producer price data into its accounts. The updated figures released in August show a real GDP growth rate of 7.8% for fiscal 2025-26, compared to an earlier provisional estimate of 7.7%.
Modi Connects Growth to Global Challenges
Modi linked India’s latest GDP performance to its ability to sustain economic activity despite global pressures. His remarks followed the release of the quarterly national accounts on August 31. He pointed to higher oil prices and supply chain issues as significant hurdles. India relies heavily on imported crude oil, making energy costs crucial for inflation, trade, and business costs across sectors.
The latest figures mark the first official GDP update for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation plans to release second quarter estimates on November 30, covering July through September. The first quarter results showed growth in manufacturing, services, agriculture, consumption, and investment. Modi highlighted the 7.8% growth rate and the economy’s resilience, which he emphasized as central to his assessment of India’s overall output.