NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion during the April to June quarter of fiscal 2026-27. The latest official figures indicate that activity remained robust across sectors such as manufacturing, services, consumption, and investment. Modi described this growth as a “herculean feat” amid global economic challenges. He pointed to factors like oil price shocks, supply chain disruptions, and broader uncertainty as hurdles faced by the economy. The Prime Minister also acknowledged the resilience and efforts of India’s citizens.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore in the first quarter, up from ₹75.46 lakh crore a year earlier. Nominal GDP grew by 10.3% to ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore, reflecting higher current-price output.
Manufacturing saw a 9.2% rise from the previous year, making it a key contributor to quarterly growth. Financial, real estate, and professional services expanded by 12.1%. The agriculture, livestock, forestry, and fishing sectors grew by 3.6%. Household consumption climbed 7.1%, with gross fixed capital formation rising nearly 12%. Investment constituted 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Manufacturing and Investment Drive Economic Expansion
Various industrial and demand indicators also showed year-on-year gains during April to June. Capital goods output increased by 15.2%, while steel consumption grew by 8.3%. Cement production went up 8.9%, indicating ongoing activity in construction and infrastructure sectors. Sales of commercial vehicles rose 18.3%, and household vehicle registrations increased 15.9%. Additionally, exports of goods and services rose 25.8%, while imports jumped 30.5% during the same period.
The Ministry of Statistics and Programme Implementation now assesses national output using a 2022-23 base year. This updated series, which replaced the previous 2011-12 base, incorporates new data sources and methods, with implementation starting in February 2026. The revisions aim to better reflect recent shifts in production, expenditure, and economic activity. Subsequent GDP estimates also integrated newer industrial production and producer price data into the national accounts.
Modi Highlights Economic Resilience Amid Global Challenges
Following the release of the first official GDP estimate for India’s 2026-27 fiscal year, Modi emphasized the 7.8% growth rate, despite external pressures impacting businesses and consumers. Elevated energy costs can influence production, transportation, and household expenses across the economy. India’s heavy reliance on imported crude oil to satisfy domestic needs makes the country vulnerable to price shocks. Supply chain disruptions also affect industrial inputs and trade flows, adding pressure on companies relying on overseas supplies.
The data for April to June show positive growth across major sectors at the start of the fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to a year earlier. The 7.8% GDP rise was accompanied by double-digit nominal growth and stronger gross value added. Modi focused his remarks on this headline growth and the economy’s ability to withstand global uncertainties. These figures serve as the first comprehensive indicator of India’s economic performance in fiscal 2026-27.