NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% economic growth during the April to June quarter of fiscal 2026-27. Describing the achievement as a “herculean feat,” he emphasized the continued expansion across vital sectors of the economy following official data. Modi attributed the positive outcome to the collective strength and resilience of India’s population, while also acknowledging the challenges posed by oil price shocks, supply chain disruptions, and global uncertainty during this period.
The Ministry of Statistics and Programme Implementation reported the real gross domestic product at ₹81.36 lakh crore for the quarter. This compares with ₹75.46 lakh crore recorded in the same period last year. Nominal GDP reached ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. The real gross value added, another indicator of economic activity, rose 8.2% to ₹73.82 lakh crore, while nominal GVA increased by 11.5% to ₹80.53 lakh crore.
Manufacturing sector growth stood at 9.2%, whereas financial, real estate, and professional services experienced a 12.1% increase. Agriculture, livestock, forestry, and fishing expanded by 3.6%. Household consumption maintained its significant role, growing 7.1%. Investment also gained momentum, with gross fixed capital formation climbing nearly 12% compared to the previous year, reaching a share of 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Broad-based growth driven by investment and manufacturing
The quarter’s results were supported by several activity indicators that showed consistent year-on-year improvement. Capital goods production increased by 15.2%, with finished steel consumption up by 8.3%. Cement production grew 8.9%, and sales of commercial vehicles surged 18.3%. Household vehicle registrations also saw a 15.9% rise. Additionally, government data indicated exports of goods and services increased by 25.8%, while imports grew by 30.5% during the April to June span.
India now calculates 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. It later integrated more recent industrial production and producer price data into its national accounts. The updated figures released in August showed real GDP growth for fiscal 2025-26 at 7.8%, compared to the earlier provisional estimate of 7.7%.
Modi underscores economic resilience amid global pressures
Modi linked the recent GDP performance to India’s capacity to sustain economic activity despite challenging global conditions. His remarks followed the release of the quarterly national accounts on August 31. The Prime Minister specifically highlighted higher oil prices and supply chain challenges as key hurdles faced by the economy. Since India imports most of its crude oil, energy costs remain critical for inflation, trade, and production expenses across 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 plans to publish the second quarter GDP estimates on November 30, covering July through September. The first quarter data demonstrated growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s commentary focused on the headline growth rate of 7.8% and the economy’s resilience, positioning this latest national output data as a central point in his remarks.