NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s impressive 7.8% expansion in the April to June quarter of fiscal 2026-27. He described this achievement as a “herculean feat” following official figures indicating ongoing growth across key sectors of the economy. Modi emphasized that the result signifies the collective strength and resilience of India’s population. He also acknowledged the challenges faced during the period, including oil price shocks, supply chain disruptions, and global uncertainties.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product (GDP) reached ₹81.36 lakh crore for the quarter, compared to ₹75.46 lakh crore in the same quarter last year. Nominal GDP climbed to ₹88.27 lakh crore, representing a 10.3% increase from ₹80 lakh crore. The real gross value added (GVA), another indicator of economic activity, grew by 8.2% to ₹73.82 lakh crore, while nominal GVA rose by 11.5% to ₹80.53 lakh crore.
Manufacturing sector experienced a 9.2% growth, whereas financial, real estate, and professional services expanded by 12.1%. The agriculture, livestock, forestry, and fishing sectors grew by 3.6%. Household consumption maintained its significant role, increasing by 7.1%. Investment activity also showed strength, with gross fixed capital formation nearly 12% higher than a year earlier. Its share of nominal GDP increased to 34.3%, up from 31.4% in the same quarter last year.
Broad-based growth driven by investment and manufacturing
The positive first quarter results were supported by several indicators showing strong year-on-year gains. Capital goods production rose by 15.2%, while finished steel consumption increased by 8.3%. Cement production grew by 8.9%, and sales of commercial vehicles jumped 18.3%. Registrations of household vehicles also went up by 15.9%. Additionally, government data revealed exports of goods and services increased by 25.8%, with imports up by 30.5% during April to June.
India has now adopted a new national accounts framework based on a 2022-23 reference year, replacing the previous 2011-12 structure. This revised series was introduced by the statistics ministry in February 2026, incorporating updated data sources and methodologies. It also integrated more recent industrial production and producer price data into the national accounts. The updated figures released in August showed real GDP growth for fiscal 2025-26 at 7.8%, slightly higher than the earlier provisional estimate of 7.7%.
Modi underscores resilience amid global economic challenges
Modi linked India’s latest GDP performance to its capacity to sustain economic activity despite global pressures. His remarks followed the release of the quarterly national accounts on August 31. The Prime Minister pointed out higher oil prices and supply chain issues as among the hurdles impacting the economy. Since India primarily imports crude oil, fluctuations in energy prices are critical for inflation, trade, and production costs across various sectors.
These latest figures represent the first official GDP estimate for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation is scheduled to release second quarter GDP estimates on November 30, covering July through September. The initial quarter data highlighted growth across manufacturing, services, agriculture, consumption, and investment. Modi’s commentary centered on the 7.8% headline figure and the economy’s resilience, framing the recent national output data as a key reference point for his remarks.