NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi lauded India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. The latest official figures indicated robust activity across manufacturing, services, consumption, and investment sectors. Modi characterized the growth pace as a “herculean feat” amid global economic headwinds. He pointed to challenges such as oil price shocks, supply chain disruptions, and broader uncertainty impacting the economy. Additionally, he credited India’s resilience and the efforts of its people.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product (GDP) reached ₹81.36 lakh crore during the first quarter. This compares with ₹75.46 lakh crore in the same period last year. Nominal GDP grew by 10.3%, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased by 8.2% to ₹73.82 lakh crore. Nominal GVA also rose by 11.5% to ₹80.53 lakh crore, indicating higher current-price output.
Manufacturing saw a 9.2% rise from the previous year, making it one of the key contributors to quarterly growth. The financial, real estate, and professional services sectors expanded by 12.1% during this period. The agriculture, livestock, forestry, and fishing industries recorded a growth of 3.6%. Household consumption climbed 7.1%, while gross fixed capital formation surged by nearly 12%. Investment represented 34.3% of nominal GDP, up from 31.4% in the same quarter of the prior fiscal year.
Manufacturing and investment bolster overall economic activity
Several industrial and demand indicators also demonstrated year-on-year improvements during the April to June timeframe. Production of capital goods increased by 15.2%, with finished steel consumption rising 8.3%. Cement output grew by 8.9%, further indicating activity in construction and infrastructure sectors. Commercial vehicle sales jumped 18.3%, and household vehicle registrations went up 15.9%. Data from the government revealed exports of goods and services increased by 25.8%, whereas imports grew by 30.5% over the same three months.
The Ministry of Statistics and Programme Implementation now estimates national output using a base year of 2022-23. This revised series replaced the previous 2011-12 baseline, incorporating newer data sources and statistical approaches. Authorities adopted this new framework in February 2026, with the aim of better capturing recent trends in production, expenditure, and economic activity. Later, the ministry integrated updated industrial production and producer price data into its national accounts for future GDP calculations.
Modi emphasizes resilience amid global economic challenges
Following the release of India’s initial GDP estimate for the 2026-27 fiscal year, Modi highlighted the 7.8% growth rate, acknowledging external factors that influenced business and consumer behavior during the quarter. Elevated energy prices can impact production, transportation, and household spending across the economy. India’s heavy reliance on imported crude oil to satisfy domestic demand makes it vulnerable to such shocks. Supply chain disruptions can also hinder industrial input supplies and trade flows, intensifying operational challenges for companies dependent on international sources.
The data for April to June revealed growth across many major sectors of India’s economy at the start of the new financial year. Manufacturing, services, agriculture, household spending, and fixed investment all increased compared to the previous year. The 7.8% rise in GDP was accompanied by double-digit nominal growth and an increase in gross value added. Modi’s remarks centered on the headline growth and the economy’s ability to withstand external pressures. These figures provide policymakers, businesses, and investors with a broad early indicator of India’s economic performance for fiscal 2026-27.