NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% expansion in the economy during the April to June quarter of fiscal 2026-27, describing the achievement as a “herculean feat” in light of official data indicating sustained growth across key sectors of the economy. He emphasized that this outcome demonstrates the collective strength and resilience of India’s populace and pointed out challenges such as oil price shocks, disruptions in supply chains, and global economic uncertainties during this period.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product for the quarter was estimated at ₹81.36 lakh crore, marking an increase from ₹75.46 lakh crore during the same period last year. Nominal GDP also saw a rise to ₹88.27 lakh crore, reflecting a 10.3% growth from ₹80 lakh crore. Additionally, real gross value added, which measures overall economic activity, grew 8.2% to ₹73.82 lakh crore, while nominal GVA increased by 11.5% to ₹80.53 lakh crore.
The manufacturing sector expanded by 9.2%, while the financial, real estate, and professional services sectors experienced a 12.1% growth. Agriculture, livestock, forestry, and fishing rose by 3.6%. Household consumption maintained its significant role in domestic demand, increasing by 7.1%. Investment activity also picked up, with gross fixed capital formation rising nearly 12% compared to the previous year, reaching a share of 34.3% of nominal GDP, up from 31.4% during the same quarter last year.
Broad-based growth driven by investment and manufacturing
The quarter’s positive results are reinforced by several indicators that showed robust year-on-year increases, such as a 15.2% rise in capital goods production, an 8.3% increase in finished steel consumption, and an 8.9% growth in cement production. Commercial vehicle sales surged by 18.3%, and vehicle registrations for households went up by 15.9%. Data from the government also revealed exports of goods and services climbed by 25.8%, while imports expanded by 30.5% during the April to June period.
India has shifted to calculating its national accounts based on a 2022-23 series, replacing the former 2011-12 framework, with the revised data introduced by the statistics ministry in February 2026, incorporating new sources and methodologies. Later updates included more recent industrial production and producer price data into the national accounts, with revised figures released in August indicating a real GDP growth rate of 7.8% for fiscal 2025-26, slightly higher than the initial provisional estimate of 7.7%.
Modi underscores economic resilience amid external challenges
Modi connected this latest GDP achievement to India’s capacity to sustain economic activity even amidst challenging global circumstances. His comments followed the official release of the quarterly national accounts on August 31. He specifically highlighted the impact of rising oil prices and supply chain disruptions as some of the major hurdles confronting the economy. As India relies heavily on crude oil imports, fluctuations in energy prices significantly influence inflation, trade balances, and operational costs across various sectors and households alike.
These latest figures mark the first official GDP assessment for India’s 2026-27 fiscal year, with the Ministry of Statistics and Programme Implementation scheduled to publish second quarter estimates on November 30, covering July through September. The data for the first quarter already indicated growth in manufacturing, services, agriculture, consumption, and investment. Modi’s remarks centered on the 7.8% headline growth rate and the economy’s overall resilience, positioning the latest national output figures as the foundation for his comments on India’s economic performance.