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. Latest official figures indicated robust activity across manufacturing, services, consumption, and investment sectors. Modi called the growth rate a “herculean feat” amid global economic headwinds, citing oil price shocks, supply chain disruptions, and broader uncertainty as challenges confronting the economy. He also credited the resilience and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore during the first quarter, up from ₹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 8.2% to ₹73.82 lakh crore, while nominal GVA surged 11.5% to ₹80.53 lakh crore, reflecting higher current-price output.
Manufacturing demonstrated a 9.2% growth from the previous year, serving as one of the main contributors to the quarter’s expansion. Financial, real estate, and professional services expanded by 12.1%. Agriculture, livestock, forestry, and fishing experienced 3.6% growth. Household consumption rose by 7.1%, and gross fixed capital formation nearly doubled, increasing by approximately 12%. Investment constituted 34.3% of nominal GDP, up from 31.4% in the same quarter of the prior financial year.
Manufacturing and Investment Drive Economic Momentum
Various industrial and demand indicators also showed year-on-year improvement in the April to June period. Capital goods production grew by 15.2%, with finished steel consumption climbing 8.3%. Cement output increased by 8.9%, signaling ongoing activity in construction and infrastructure sectors. Sales of commercial vehicles rose by 18.3%, and household vehicle registrations went up by 15.9%. The government’s data further revealed exports of goods and services increased by 25.8%, while imports rose by 30.5% during the same three months.
The Ministry of Statistics and Programme Implementation adopted a new base year of 2022-23 for measuring national output. This updated series replaced the earlier 2011-12 base and incorporated improved data sources and methods. The new framework was implemented in February 2026, aiming to better reflect recent trends in production, expenditure, and economic activity. Subsequently, the ministry also integrated newer industrial production and producer price data into its national accounts for future GDP estimates.
Modi Highlights Economic Resilience Amid Global Challenges
Following the release of the official GDP estimate for India’s 2026-27 fiscal year, Modi emphasized the 7.8% growth rate while acknowledging external pressures impacting businesses and consumers during the quarter. Rising energy costs influence production, transportation, and household expenses across the country. As India depends heavily on imported crude oil to satisfy domestic demand, supply chain disruptions also affect industrial inputs and trade flows, increasing operational challenges for firms reliant on overseas supplies.
The data from April to June show positive growth across key segments of India’s economy at the start of the financial year. Manufacturing, services, agriculture, household consumption, and fixed investment all expanded compared to the previous year. The 7.8% GDP increase was accompanied by double-digit nominal growth and a rise in gross value added. Narendra Modi’s remarks focused on the headline figures and the economy’s resilience, providing policymakers, businesses, and investors with the first comprehensive snapshot of India’s economic performance for fiscal 2026-27.