NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% expansion in the April to June quarter of fiscal 2026-27, describing it as a “herculean feat” following official data that indicates ongoing growth across key sectors of the economy. He attributed this success to the collective strength and resilience of India’s population, while also noting challenges such as oil price shocks, supply chain disruptions, and global uncertainties during the period.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product (GDP) for the quarter stood at ₹81.36 lakh crore, compared to ₹75.46 lakh crore in the same period last year. Nominal GDP reached ₹88.27 lakh crore, representing a 10.3% increase from ₹80 lakh crore. The real gross value added, a key indicator of economic activity, grew by 8.2% to ₹73.82 lakh crore, while nominal GVA climbed 11.5% to ₹80.53 lakh crore.
During this period, manufacturing expanded by 9.2%, while the financial, real estate, and professional services sectors experienced growth of 12.1%. Agriculture, livestock, forestry, and fishing increased by 3.6%. Household consumption remained robust, rising 7.1%, underscoring its continued importance to domestic demand. Investment also gained strength, with gross fixed capital formation up nearly 12% from the previous year, accounting for 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Investment and manufacturing drive overall growth
The positive first-quarter results were supported by several activity indicators showing significant year-on-year increases. Capital goods production grew by 15.2%, finished steel consumption rose by 8.3%, and cement output increased by 8.9%. Commercial vehicle sales went up by 18.3%, while household vehicle registrations increased by 15.9%. The data also revealed a 25.8% rise in goods and services exports, with imports climbing 30.5% during April to June.
India now calculates its national accounts using a 2022-23 base year, replacing the previous 2011-12 framework. The statistics ministry launched the revised series in February 2026, incorporating new data sources and methodologies, including updated industrial production and producer price information. In August, the revised figures showed real GDP growth for fiscal 2025-26 at 7.8%, slightly higher than the earlier provisional estimate of 7.7%.
Modi emphasizes economic resilience amid global challenges
Modi linked India’s latest GDP figures to its ability to sustain economic activity despite difficult global conditions. His comments followed the release of the quarterly national accounts on August 31. He specifically highlighted higher oil prices and supply chain pressures as significant challenges impacting the economy. With India importing most of its crude oil, energy prices play a vital role in inflation, trade, and production costs affecting both 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 the second quarter GDP estimates on November 30, covering July through September. The initial quarter data demonstrated growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s remarks centered on the 7.8% headline growth rate and the economy’s resilience, making the latest national output figures the focal point of his statement.