NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has commended India’s impressive 7.8% growth in the April to June quarter of fiscal 2026-27. He described this achievement as a “herculean feat” after official data indicated ongoing expansion across key sectors of the economy. Modi emphasized that this outcome reflects the collective strength and resilience of India’s population. He also highlighted the challenges faced during the period, including oil price shocks, disruptions in supply chains, and global uncertainty.
According to the Ministry of Statistics and Programme Implementation, the real gross domestic product stood at ₹81.36 lakh crore for the quarter. This compares to ₹75.46 lakh crore in the same period last year. Nominal GDP reached ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. The real gross value added, which measures overall economic activity, grew by 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore.
Manufacturing experienced a 9.2% growth during this quarter, with financial, real estate, and professional services expanding by 12.1%. The agriculture sector, including livestock, forestry, and fishing, increased by 3.6%. Household consumption sustained its significant role in domestic demand, rising by 7.1%. Investment activity also gained momentum, with gross fixed capital formation increasing nearly 12% year-over-year. Its proportion of nominal GDP reached 34.3%, up from 31.4% in the same quarter last year.
Broader growth driven by investment and manufacturing sectors
The quarter’s results were supported by several activity indicators showing strong year-on-year gains. Capital goods production increased by 15.2%, while consumption of finished steel went up by 8.3%. Cement production grew by 8.9%, and sales of commercial vehicles climbed by 18.3%. Additionally, household vehicle registrations rose by 15.9%. Government data also revealed a 25.8% rise in exports of goods and services, with imports increasing by 30.5% during the April to June interval.
India has updated its national accounts calculations using a 2022-23 base year, replacing the earlier 2011-12 framework. The statistics ministry introduced this revised series in February 2026, incorporating new data sources and revised methodologies. Subsequently, it integrated more recent industrial production and producer price data into its national accounts. The updated figures released in August indicated real GDP growth for fiscal 2025-26 at 7.8%, an adjustment from the previous provisional estimate of 7.7%.
Modi emphasizes resilience amidst external economic pressures
Modi connected the recent GDP performance to India’s capacity to sustain economic activity despite challenging global conditions. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister specifically mentioned higher oil prices and supply chain issues as among the hurdles facing the economy. Since India imports most of its crude oil, energy prices play a crucial role in influencing inflation, trade, and production costs across various businesses and households.
These latest figures mark the first official GDP assessment for India’s 2026-27 fiscal year. The Ministry of Statistics and Programme Implementation will publish second quarter GDP estimates on November 30, covering July through September. The initial quarter’s data showed positive growth in manufacturing, services, agriculture, consumption, and investment. Modi’s commentary centered on the 7.8% headline figure and the economy’s resilience, positioning the latest national output data as the focal point of his remarks.