NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has commended India’s economic growth of 7.8% in the April to June quarter of fiscal 2026-27. He described this achievement as a “herculean feat” following official data that indicated sustained expansion across key sectors of the economy. Modi emphasized that the result reflects the collective strength and resilience of India’s population. He also pointed out challenges such as oil price shocks, supply chain disruptions, and global uncertainty during this period.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product (GDP) was valued at ₹81.36 lakh crore for the quarter, compared to ₹75.46 lakh crore in the same timeframe last year. Nominal GDP stood at ₹88.27 lakh crore, marking a 10.3% increase from ₹80 lakh crore. Meanwhile, real gross value added, which measures overall economic activity, grew by 8.2% to ₹73.82 lakh crore. Nominal GVA also saw an 11.5% rise to ₹80.53 lakh crore.
The manufacturing sector expanded by 9.2%, while financial, real estate, and professional services experienced a 12.1% growth. The agriculture, livestock, forestry, and fishing industries grew by 3.6%. Household consumption increased by 7.1%, continuing to be a significant driver of domestic demand. Investment activity also showed improvement, with gross fixed capital formation rising nearly 12% compared to the previous year. Its proportion of nominal GDP increased to 34.3%, up from 31.4% in the same quarter last year.
Support from Investment and Manufacturing Underpins Overall Growth
This positive quarter was reinforced by several indicators demonstrating strong year-over-year gains. Production of capital goods increased by 15.2%, while finished steel consumption grew by 8.3%. Cement output rose by 8.9%, and sales of commercial vehicles jumped 18.3%. Additionally, household vehicle registrations increased by 15.9%. Data from the government also indicated exports of goods and services surged by 25.8%, with imports rising by 30.5% during April to June.
India has now shifted to using a 2022-23 base year for calculating national accounts, replacing the previous 2011-12 framework. The statistics ministry introduced this revised series in February 2026, incorporating new data sources and updated methodologies. Subsequently, it integrated more recent industrial production and producer price data into its national accounts. The updated figures released in August revised the real GDP growth for fiscal 2025-26 to 7.8%, from an earlier provisional estimate of 7.7%.
Modi Attributes Growth to Global and Domestic Resilience
Modi linked India’s latest GDP performance to the country’s ability to sustain economic activity despite challenging global conditions. His remarks came shortly after the release of the quarterly national accounts on August 31. The Prime Minister specifically highlighted the impact of rising oil prices and supply chain bottlenecks among the difficulties faced by the economy. Since India imports a majority of its crude oil, fluctuations in energy prices significantly influence inflation, trade balances, and production costs across various industries and households.
These latest figures mark the first official GDP release for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation is scheduled to publish second quarter GDP estimates on November 30, covering July through September. The initial quarter data highlighted growth across manufacturing, services, agriculture, consumption, and investment sectors. Modi’s commentary centered on the headline growth rate of 7.8% and the overall resilience of the economy, underscoring the significance of this national output data in shaping his outlook.