NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% economic expansion in the April to June quarter of fiscal 2026-27. Describing the achievement as a “herculean feat,” he highlighted the sustained growth across key sectors, as official data confirmed ongoing economic progress. Modi attributed this success to the collective strength and resilience of India’s population, even as he acknowledged challenges such as oil price shocks, supply chain disruptions, and global uncertainty during this period.
In the first quarter, the Ministry of Statistics and Programme Implementation reported real gross domestic product at ₹81.36 lakh crore, compared to ₹75.46 lakh crore in the same timeframe last year. Nominal GDP rose to ₹88.27 lakh crore, marking a 10.3% increase from ₹80 lakh crore. Meanwhile, real gross value added increased 8.2% to ₹73.82 lakh crore, and nominal GVA grew by 11.5% to ₹80.53 lakh crore.
During this period, manufacturing experienced a 9.2% growth, while financial, real estate, and professional services expanded by 12.1%. The agriculture, livestock, forestry, and fishing sector registered a growth of 3.6%. Household consumption maintained its significant role in domestic demand, rising 7.1%. Investment also gained momentum, with gross fixed capital formation increasing nearly 12% compared to the previous year. Its share of nominal GDP reached 34.3%, up from 31.4% in the corresponding quarter last year.
Broad-based growth driven by investment and manufacturing
At the start of the year, several key activity indicators reflected robust annual gains. Capital goods production climbed 15.2%, with finished steel consumption up 8.3%. Cement output expanded by 8.9%, and sales of commercial vehicles surged 18.3%. Registrations for household vehicles increased by 15.9%. The government’s data also revealed a 25.8% rise in exports of goods and services, alongside a 30.5% increase in imports during the April to June interval.
India now reports its national accounts with a 2022-23 base year, replacing the previous 2011-12 framework. This revised series was introduced in February 2026, incorporating new data sources and updated methodologies by the statistics ministry. Subsequently, newer industrial production and producer price data were integrated into the national accounts. The updated figures released in August revised the real GDP growth for fiscal 2025-26 to 7.8%, upward from an initial provisional estimate of 7.7%.
Modi emphasizes resilience amid external economic challenges
In his remarks, Modi connected the impressive GDP figures to India’s capacity to sustain economic activity despite adverse global conditions. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister pointed out that higher oil prices and supply chain issues were among the obstacles faced by the economy. As India relies heavily on importing crude oil, energy costs play a vital role in inflation, trade, and overall production expenses for businesses and households.
These latest figures mark the first official GDP assessment for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation will publish second quarter GDP estimates on November 30, covering July through September. The initial quarter’s data demonstrated growth across manufacturing, services, agriculture, household consumption, and investment. Modi’s emphasis remained on the 7.8% headline growth rate and the economy’s resilience, positioning the new national output data as a central point of his statement.