NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. He described this achievement as a “herculean feat” following official data that indicates sustained growth across key sectors of the economy. Modi attributed this performance to the collective strength and resilience of India’s population. He also acknowledged the influence of oil price shocks, supply chain disruptions, and global uncertainty during the period.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product (GDP) stood at ₹81.36 lakh crore for the quarter. This compares with ₹75.46 lakh crore in the same period last year. Nominal GDP reached ₹88.27 lakh crore, representing a 10.3% increase from ₹80 lakh crore. Real gross value added (GVA), another indicator of economic activity, grew by 8.2% to ₹73.82 lakh crore. Meanwhile, nominal GVA rose by 11.5% to ₹80.53 lakh crore.
Manufacturing expanded by 9.2% during this period, while the financial, real estate, and professional services sectors grew by 12.1%. Agriculture, livestock, forestry, and fishing increased by 3.6%. Household consumption rose by 7.1%, continuing its role as a primary driver of domestic demand. Additionally, investment saw an uplift, with gross fixed capital formation increasing nearly 12% compared to the previous year. Its share of nominal GDP reached 34.3%, up from 31.4% in the same quarter last year.
Broader growth driven by investment and manufacturing
The first quarter results were supported by several activity indicators showing strong year-on-year improvements. Capital goods production climbed 15.2%, and finished steel consumption increased by 8.3%. Cement output grew by 8.9%, and commercial vehicle sales rose by 18.3%. Registrations of household vehicles also went up by 15.9%. Government data further revealed exports of goods and services increased by 25.8%, while imports grew by 30.5% during April to June.
India now calculates its national accounts using a 2022-23 base year, replacing the previous 2011-12 framework. The statistics ministry introduced this revised series in February 2026, incorporating new data sources and updated methodologies. Later, it included newer industrial production and producer price data into its national accounts. The updated figures released in August indicated a real GDP growth of 7.8% for fiscal 2025-26, revising the earlier provisional estimate of 7.7%.
Modi emphasizes economic resilience amid global challenges
Modi connected the recent GDP performance to India’s capacity to sustain economic activity despite global pressures. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister specifically pointed out higher oil prices and supply chain issues as significant hurdles for the economy. Given that India imports most of its crude oil, energy prices play a crucial role in inflation, trade, and production costs affecting both businesses and households.
These latest figures mark the first official GDP data 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 demonstrated growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s remarks centered on the 7.8% headline figure and the economy’s resilience, framing the latest national output figures as a key element of his commentary.