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. He described this achievement as a “herculean feat” following official data that indicated ongoing growth across key sectors of the economy. Modi emphasized that the result demonstrated the collective strength and resilience of India’s citizens. He also highlighted the impact of oil price shocks, supply chain disruptions, and global uncertainty during this period.
The Ministry of Statistics and Programme Implementation reported the real gross domestic product at ₹81.36 lakh crore for the quarter, compared to ₹75.46 lakh crore in the same quarter last year. Nominal GDP reached ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. Real gross value added, another indicator of economic activity, grew 8.2% to ₹73.82 lakh crore, while nominal GVA surged 11.5% to ₹80.53 lakh crore.
Manufacturing experienced a 9.2% growth during this quarter, with financial, real estate, and professional services expanding by 12.1%. Agriculture, livestock, forestry, and fishing grew by 3.6%. Household consumption maintained its vital role as a primary component of domestic demand, increasing by 7.1%. Investment also gained strength, with gross fixed capital formation rising nearly 12% compared to the previous year. Its share of nominal GDP reached 34.3%, up from 31.4% in the same quarter last year.
Broad-based growth driven by investment and manufacturing
The quarter’s positive results were supported by several activity indicators showing solid year-on-year gains. Production of capital goods increased by 15.2%, and consumption of finished steel rose by 8.3%. Cement production grew 8.9%, while sales of commercial vehicles jumped 18.3%. Additionally, registrations of household vehicles increased by 15.9%. Government data also revealed exports of goods and services grew by 25.8%, with imports rising by 30.5% during April to June.
India now calculates its national accounts based on a 2022-23 base year, replacing the previous 2011-12 framework. The statistics ministry introduced this revised series in February 2026, incorporating new data sources and updated methodologies. Later, it integrated more recent industrial production and producer price data into its national accounts. The updated figures released in August showed real GDP growth for fiscal 2025-26 at 7.8%, revising the earlier provisional estimate of 7.7%.
Modi emphasizes resilience amid global challenges
Modi attributed India’s recent GDP performance to its capacity to sustain economic activity despite challenging global conditions. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister specifically pointed out higher oil prices and supply chain pressures as among the key hurdles facing the economy. Since India imports most of its crude oil, energy prices are crucial for inflation, trade, and production costs affecting both businesses and households.
These latest figures mark the first official GDP estimate for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation is scheduled to publish second quarter GDP estimates on November 30, covering July through September. The initial quarter’s data reflected growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s remarks centered on the 7.8% headline figure and the economy’s resilience, placing the recent national output data prominently in his assessment of India’s economic performance.