NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has praised India’s 7.8% economic growth in the April to June quarter of fiscal 2026-27. He called the performance a “herculean feat” after official data showed continued expansion across major parts of the economy. Modi said the result reflected the collective strength and resilience of India’s people. He also pointed to oil price shocks, supply chain disruptions and global uncertainty during the period.
India’s economy grew 7.8% in Q1 FY27 as manufacturing, services and investment expanded.
The Ministry of Statistics and Programme Implementation put real gross domestic product at ₹81.36 lakh crore for the quarter. That compared with ₹75.46 lakh crore in the same period a year earlier. Nominal GDP reached ₹88.27 lakh crore, up 10.3% from ₹80 lakh crore. Real gross value added, another measure of economic activity, increased 8.2% to ₹73.82 lakh crore. Nominal GVA rose 11.5% to ₹80.53 lakh crore.
Manufacturing grew 9.2% during the quarter, while financial, real estate and professional services expanded 12.1%. Agriculture, livestock, forestry and fishing grew 3.6%. Household consumption increased 7.1%, maintaining its role as a major component of domestic demand. Investment also strengthened, with gross fixed capital formation rising close to 12% from a year earlier. Its share of nominal GDP reached 34.3%, compared with 31.4% in the corresponding quarter last year.
Investment and manufacturing support broad growth
The first quarter result came as several activity indicators recorded firm year on year gains. Capital goods production increased 15.2%, while finished steel consumption rose 8.3%. Cement production grew 8.9%, and commercial vehicle sales climbed 18.3%. Household vehicle registrations increased 15.9%. Government data also showed goods and services exports rising 25.8%, while imports increased 30.5% during the April to June period.
India now calculates national accounts using a 2022-23 base year, replacing the previous 2011-12 framework. The statistics ministry introduced the revised series in February 2026 with new data sources and updated methods. It later incorporated newer industrial production and producer price information into its national accounts. Updated figures released in August placed real GDP growth for fiscal 2025-26 at 7.8%, compared with an earlier provisional estimate of 7.7%.
Modi highlights resilience amid global pressures
Modi linked the latest GDP performance to India’s ability to maintain economic activity during difficult global conditions. His remarks followed the August 31 release of the quarterly national accounts. The Prime Minister specifically cited higher oil prices and supply chain pressures among the challenges facing the economy. India imports most of the crude oil it consumes, making energy prices important for inflation, trade and production costs across businesses and households.
The latest figures provide the first official GDP reading for India’s 2026-27 financial year. The Ministry of Statistics and Programme Implementation will release second quarter GDP estimates on November 30, covering July through September. The first quarter data showed growth across manufacturing, services, agriculture, consumption and investment. Modi’s response focused on the 7.8% headline rate and the economy’s resilience, placing the latest national output data at the center of his comments.