NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion in the economy during the April to June quarter of fiscal 2026-27. The latest official figures indicated sustained momentum across manufacturing, services, consumption, and investment sectors. Modi called the growth rate a “herculean feat” amid global economic challenges. He pointed out issues such as oil price shocks, supply chain disruptions, and broader uncertainty as hurdles confronting the economy. The Prime Minister also praised the resilience and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product (GDP) reached ₹81.36 lakh crore in the first quarter, up from ₹75.46 lakh crore in the same period a year earlier. Nominal GDP saw a 10.3% increase, rising to ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added (GVA) grew 8.2% to ₹73.82 lakh crore, while nominal GVA climbed 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
Manufacturing experienced a 9.2% rise from the previous year, becoming one of the key drivers of quarterly growth. The financial, real estate, and professional services sectors expanded by 12.1%. Agriculture, livestock, forestry, and fishing recorded a growth rate of 3.6%. Household consumption increased by 7.1%, and gross fixed capital formation grew by nearly 12%. Investment represented 34.3% of nominal GDP, compared to 31.4% in the same quarter of the previous fiscal year.
Manufacturing and Investment Drive the Economy Forward
Various industrial and demand indicators also showed year-on-year gains during April to June. Capital goods output rose by 15.2%, and the consumption of finished steel increased by 8.3%. Cement production went up by 8.9%, indicating ongoing activity in construction and infrastructure sectors. Sales of commercial vehicles grew by 18.3%, and household vehicle registrations climbed by 15.9%. Data from the government revealed exports of goods and services increased by 25.8%, while imports grew by 30.5% over the same period.
The Ministry of Statistics and Programme Implementation adopted a new measurement framework for national output, utilizing a 2022-23 base year. This updated series replaced the earlier 2011-12 base, incorporating newer data sources and statistical approaches. Implementation of the revised methodology began in February 2026, aiming to better capture recent patterns in production, expenditure, and overall economic activity. Later, the ministry integrated newer industrial production figures and producer price data into its national accounts for subsequent GDP estimations.
Modi Highlights Economic Resilience Amid Global Challenges
Following the release of India’s initial official GDP estimate for 2026-27, Modi emphasized the 7.8% growth rate while also acknowledging external pressures that impacted businesses and consumers during the quarter. Rising energy costs can influence production, transportation, and household expenses across the economy. As India depends heavily on imported crude oil to satisfy domestic demand, disruptions in supply chains can affect industrial inputs and trade flows, thereby increasing operational pressures on companies reliant on overseas supplies.
The data from April to June demonstrated growth across several major sectors of India’s economy at the start of the fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the same period last year. The 7.8% GDP increase coincided with double-digit nominal growth and a rise in gross value added. Modi’s focus remained on the headline figure and the economy’s overall resilience. These figures provide policymakers, investors, and businesses with their first broad indication of India’s economic performance for the fiscal year 2026-27.