NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion in the April to June period of fiscal 2026-27. The latest official statistics indicated that activity remained robust across sectors such as manufacturing, services, consumption, and investment. Modi described this growth as a “herculean feat” amid a backdrop of global economic challenges. He pointed to oil price shocks, disruptions in supply chains, and broader uncertainty as key obstacles facing the economy. The Prime Minister also acknowledged the dedication and resilience of India’s citizens.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore in the first quarter, up from ₹75.46 lakh crore in the same period a year earlier. The nominal GDP grew by 10.3%, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added rose by 8.2% to ₹73.82 lakh crore, while nominal GVA increased 11.5% to ₹80.53 lakh crore, reflecting higher current-price output.
Manufacturing experienced a 9.2% increase from the previous year, making it a significant contributor to quarterly growth. The growth rate in financial, real estate, and professional services was 12.1%. Agriculture, forestry, livestock, and fishing posted a 3.6% rise. Household consumption saw a 7.1% increase, with gross fixed capital formation climbing nearly 12%. Investment now accounts for 34.3% of nominal GDP, up from 31.4% in the same quarter last year.
Growth in Manufacturing and Investment Drives the Economy
Several industrial and demand indicators demonstrated year-on-year growth during the April-June timeframe. Capital goods production jumped 15.2%, and steel consumption increased by 8.3%. Cement output rose by 8.9%, indicating ongoing activity in construction and infrastructure sectors. Commercial vehicle sales grew 18.3%, while registrations for household vehicles went up by 15.9%. Exports of goods and services also increased by 25.8%, with imports rising by 30.5% over the same period.
The Ministry of Statistics and Programme Implementation has adopted a new base year of 2022-23 for measuring national output. This revised series replaces the earlier 2011-12 base, incorporating updated data sources and methodologies. The new framework was implemented in February 2026 and aims to better reflect recent trends in production, expenditure, and economic activity. Subsequently, the ministry integrated more recent industrial production and producer price data into its national accounts for future GDP estimates.
Modi Highlights Economic Resilience Amid Global Turbulence
Following the release of India’s initial official GDP estimate for the 2026-27 fiscal year, Modi emphasized the 7.8% growth figure. He also pointed out the external pressures impacting businesses and consumers during the quarter. Rising energy costs influence production, transportation, and household expenses across the nation. India’s dependence on imported crude oil to meet domestic needs makes it vulnerable to price fluctuations. Supply chain disruptions further strain industrial inputs and trade, complicating the operational environment for companies reliant on overseas supplies.
The data from April to June indicated robust growth across key sectors at the start of the fiscal year. Manufacturing, services, agriculture, household expenditure, and fixed investment all expanded compared to the previous year. The 7.8% increase in GDP was accompanied by double-digit nominal growth and a rise in gross value added. Modi underscored the economy’s resilience and emphasized the importance of these figures as a broad initial indicator of India’s economic performance in the current fiscal year.