NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has commended India’s 7.8% economic expansion in the April to June period of fiscal 2026-27. Recent official figures revealed that activity remained robust across manufacturing, services, consumption, and investment sectors. Modi described this growth as a “herculean feat” during a time characterized by global economic tensions. He pointed to challenges such as oil price shocks, supply chain disruptions, and widespread uncertainty. Additionally, he credited India’s people for their resilience and efforts.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore in the first quarter. This compares to ₹75.46 lakh crore during 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 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore, reflecting higher output measured at current prices.
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. Agriculture, livestock, forestry, and fishing experienced a growth of 3.6%. Household consumption increased by 7.1%, and gross fixed capital formation nearly doubled, rising by approximately 12%. Investment now accounts for 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Manufacturing and investments drive economic activity
Several indicators of industrial activity and demand also showed positive year-on-year changes in the April to June quarter. Production of capital goods increased by 15.2%, while finished steel consumption grew by 8.3%. Cement production went up by 8.9%, indicating ongoing activity in construction and infrastructure sectors. Sales of commercial vehicles rose by 18.3%, and household vehicle registrations went up by 15.9%. Data from the government also indicated exports of goods and services increased by 25.8%, while imports grew by 30.5% during the same period.
The Ministry of Statistics and Programme Implementation now evaluates national output based on a 2022-23 base year. This new series replaced the previous 2011-12 baseline and incorporated updated data sources and statistical methodologies. Authorities started using this revised framework in February 2026. The changes aim to better reflect current patterns in production, spending, and overall economic activity. Later, the ministry also integrated newer industrial production and producer price data into its national accounts for subsequent GDP calculations.
Modi highlights resilience amid global economic uncertainties
Following the release of the initial official GDP estimate for India’s 2026-27 fiscal year, Modi emphasized the 7.8% growth rate. He acknowledged the external pressures that impacted businesses and consumers during the quarter. Rising energy costs can influence production, transportation, and household expenses across the economy. India’s heavy reliance on imported crude oil to meet domestic demand was also noted. Supply chain disruptions can affect industrial inputs and trade flows, creating additional operational challenges for companies dependent on overseas supplies.
The data for April to June showed growth across several major sectors at the start of the fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all expanded compared to the previous year. The 7.8% GDP increase also coincided with double-digit nominal growth and a rise in gross value added. Narendra Modi emphasized the headline growth and the economy’s resilience. These figures provide policymakers, businesses, and investors with the initial comprehensive gauge of India’s economic performance in fiscal 2026-27.