NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has commended India’s robust 7.8% expansion in the April to June quarter of fiscal 2026-27. Describing it as a “herculean feat,” he highlighted this achievement following official data that showed sustained growth across key sectors of the economy. Modi attributed the positive results to the collective strength and resilience of India’s citizens, while also noting the challenges posed by oil price shocks, supply chain disruptions, and global uncertainties during this period.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product (GDP) was estimated at ₹81.36 lakh crore for the quarter, compared to ₹75.46 lakh crore in the same quarter of the previous year. Nominal GDP rose to ₹88.27 lakh crore, marking a 10.3% increase from ₹80 lakh crore. The real gross value added (GVA), another key indicator of economic activity, grew by 8.2% to ₹73.82 lakh crore, while nominal GVA increased by 11.5% to ₹80.53 lakh crore.
Manufacturing sector experienced a 9.2% growth, while financial, real estate, and professional services expanded by 12.1%. The agriculture, livestock, forestry, and fishing sector grew by 3.6%. Household consumption remained strong, climbing 7.1%, underscoring its importance as a significant component of domestic demand. Investment also gained momentum, with gross fixed capital formation increasing 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.
Broader economic expansion driven by investment and manufacturing
The first quarter results coincided with several positive activity indicators, which showed substantial year-on-year improvements. Capital goods production surged by 15.2%, while finished steel consumption climbed 8.3%. Cement production grew by 8.9%, and sales of commercial vehicles increased by 18.3%. Additionally, household vehicle registrations rose by 15.9%. The government’s data also revealed exports of goods and services increasing by 25.8%, with imports rising 30.5% during April to June.
India has shifted to calculating its national accounts using a 2022-23 base year, replacing the earlier 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 information into its national accounts. The updated figures released in August indicated a real GDP growth of 7.8% for fiscal 2025-26, revising the previous provisional estimate of 7.7%.
Modi emphasizes economic resilience amidst global challenges
Modi connected India’s latest GDP performance to the country’s capacity to sustain economic activity despite facing challenging global circumstances. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister pointed out higher oil prices and supply chain issues among the difficulties confronting the economy. As India relies heavily on crude oil imports, energy prices play a crucial role in influencing inflation, trade, and overall production costs for 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 first quarter data showed growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s remarks focused on the 7.8% headline figure and the economy’s resilience, positioning the recent national output data as central to his assessment of India’s economic trajectory.