NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% economic growth in the April to June quarter of fiscal 2026-27. Describing the achievement as a “herculean feat,” he highlighted the positive data that showed sustained growth across key sectors of the economy. Modi attributed this success to the collective strength and resilience of India’s citizens, while also acknowledging the challenges posed by oil price shocks, supply chain disruptions, and global uncertainties during that period.
The Ministry of Statistics and Programme Implementation reported that the real gross domestic product for the quarter was ₹81.36 lakh crore, compared to ₹75.46 lakh crore in the same quarter last year. Nominal GDP stood at ₹88.27 lakh crore, marking a 10.3% increase from ₹80 lakh crore. Additionally, real gross value added, another indicator of economic activity, grew 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore.
Manufacturing expanded by 9.2% during the quarter, with financial, real estate, and professional services growing 12.1%. Agriculture, livestock, forestry, and fishing increased by 3.6%. Household consumption contributed significantly, rising 7.1%, solidifying its position as a key element of domestic demand. Investment also gained momentum, with gross fixed capital formation climbing nearly 12% from the previous year, reaching a share of 34.3% of nominal GDP compared to 31.4% last year.
Broad-based growth driven by investment and manufacturing activity
The latest data showed several indicators recording strong annual gains. Capital goods output surged 15.2%, while the consumption of finished steel increased by 8.3%. Cement production grew by 8.9%, and sales of commercial vehicles jumped 18.3%. Additionally, registrations of household vehicles rose 15.9%. Exports of goods and services increased 25.8%, whereas imports went up by 30.5% during the April to June period.
India now calculates its national accounts using a 2022-23 base year, replacing the earlier 2011-12 framework. The revised series was introduced by the statistics ministry in February 2026, incorporating new data sources and methods. It also integrated more recent industrial production and producer price data into the national accounts. In August, updated figures indicated that real GDP growth for fiscal 2025-26 was 7.8%, slightly higher than the provisional estimate of 7.7%.
Modi emphasizes resilience amidst global challenges
Modi linked the recent GDP performance to India’s capacity to sustain economic activity despite external pressures. His remarks followed the release of the quarterly national accounts on August 31. The Prime Minister specifically cited global issues such as rising oil prices and supply chain disruptions as hurdles for the economy. Since India relies heavily on crude oil imports, fluctuations in energy prices significantly impact inflation, trade balances, and production costs for both businesses and households.
These latest figures serve as the official first-quarter GDP measurement for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation plans to publish second-quarter GDP estimates on November 30, covering July through September. The initial quarter’s data showcased growth in manufacturing, services, agriculture, investment, and consumption. Modi emphasized the 7.8% overall growth rate and the economy’s resilience, positioning the latest national output figures as the focal point of his commentary.