NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi lauded India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. The latest official figures indicate that economic activity stayed robust across manufacturing, services, consumption, and investment sectors. Modi characterized this growth rate as a “herculean feat,” especially given the global economic pressures during this period. He pointed to challenges such as oil price shocks, supply chain disruptions, and broader economic uncertainties. The Prime Minister also attributed the resilience and dedication of India’s population for this achievement.
During the first quarter, India’s real gross domestic product (GDP) reached ₹81.36 lakh crore, according to the Ministry of Statistics and Programme Implementation. This compares to ₹75.46 lakh crore in the same period last year. Nominal GDP grew by 10.3%, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased by 8.2% to ₹73.82 lakh crore, while nominal GVA saw an 11.5% rise to ₹80.53 lakh crore, indicating higher output at current prices.
Manufacturing grew 9.2% year-over-year, contributing significantly to the quarterly growth. The sectors of financial, real estate, and professional services experienced a 12.1% increase during this period. Agriculture, livestock, forestry, and fishing expanded by 3.6%. Household consumption saw a 7.1% rise, and gross fixed capital formation went up by nearly 12%. Investment now makes up 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Manufacturing and Investment Drive Economic Expansion
Various industrial and demand indicators also demonstrated year-on-year improvement in the April-June quarter. Capital goods production grew by 15.2%, while consumption of finished steel increased by 8.3%. Cement production advanced 8.9%, signaling ongoing activity in construction and infrastructure sectors. Sales of commercial vehicles rose 18.3%, and household vehicle registrations grew 15.9%. Data from the government also revealed exports of goods and services increased by 25.8%, with imports climbing 30.5% during the same period.
The Ministry of Statistics and Programme Implementation has adopted a new measurement framework using a 2022-23 base year. This updated series replaces the previous 2011-12 base, incorporating revised data sources and improved statistical techniques. Authorities began applying this new methodology in February 2026. The aim of these revisions is to better reflect recent trends across production, expenditure, and economic activity. Subsequently, the ministry integrated newer industrial production and producer price data into its calculations for future GDP estimates.
Modi Highlights Economic Resilience Amid Global Challenges
Following the release of India’s initial official GDP estimate for the 2026-27 fiscal year, Modi emphasized the 7.8% growth rate while also acknowledging external factors impacting businesses and consumers during the quarter. Fluctuations in energy prices can influence various economic facets, including production, transportation, and household expenses. India’s heavy reliance on imported crude oil to satisfy domestic demand makes it vulnerable to such shocks. Additionally, supply chain disruptions can affect industrial inputs and trade flows, increasing operational pressures for companies dependent on overseas supplies.
The data from April to June showed positive trends across key segments of India’s economy at the beginning of the new fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the same period last year. The 7.8% GDP growth also coincided with double-digit nominal growth and stronger gross value added. Modi centered his remarks on the headline expansion and the economy’s resilience, noting that these figures offer policymakers, businesses, and investors the first comprehensive insight into India’s economic performance for fiscal 2026-27.