NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. Recent official figures indicated that economic activity remained robust across sectors such as manufacturing, services, consumption, and investment. Modi characterized this growth as a “herculean feat” amid global economic challenges. He pointed to oil price shocks, supply chain disturbances, and broader uncertainty as obstacles confronting the economy. The Prime Minister also credited the resilience and efforts of India’s citizens.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore during the first quarter, up from ₹75.46 lakh crore in the same period last year. Nominal GDP rose 10.3% to ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased by 8.2% to ₹73.82 lakh crore, while nominal GVA climbed 11.5% to ₹80.53 lakh crore, reflecting higher current-price output.
Manufacturing grew by 9.2% year-on-year, making it a significant contributor to quarterly growth. The sectors of financial, real estate, and professional services expanded by 12.1% during this timeframe. Agriculture, livestock, forestry, and fishing saw a growth of 3.6%. Household consumption advanced 7.1%, with gross fixed capital formation nearly doubling at 12%. Investment represented 34.3% of nominal GDP, compared to 31.4% in the same quarter of the previous fiscal year.
Strengthening of Manufacturing and Investment Boosts Economy
Various industrial and demand indicators also demonstrated year-on-year improvements for the April to June period. Capital goods production increased by 15.2%, and finished steel consumption grew by 8.3%. Cement output rose 8.9%, further indicating activity in construction and infrastructure sectors. Sales of commercial vehicles increased by 18.3%, while household vehicle registrations went up by 15.9%. Additionally, government data revealed exports of goods and services surged by 25.8%, whereas imports grew by 30.5% during the same quarter.
The Ministry of Statistics and Programme Implementation adopted a new base year of 2022-23 for measuring national output, replacing the previous 2011-12 base. This revision introduced updated data sources and refined statistical methods, with the new framework in use since February 2026. The modifications aim to better reflect recent trends in production, expenditure, and overall economic activity. Subsequently, the ministry integrated newer industrial production and producer price data into its national accounts for future GDP calculations.
Modi Highlights Economic Resilience Amid Global Uncertainty
Following the release of India’s initial official GDP estimate for the 2026-27 fiscal year, Modi emphasized the 7.8% growth rate, acknowledging the external pressures that impacted businesses and consumers during the quarter. Elevated energy costs can influence production, transportation, and household expenses across the economy. India’s dependence on imported crude oil to meet domestic needs makes it vulnerable to such shocks. Disruptions in supply chains can also hinder industrial inputs and trade flows, intensifying operational challenges for companies reliant on overseas supplies.
The data from April to June displayed growth across key segments of India’s economy at the start of the fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all saw year-on-year increases. The 7.8% GDP rise coincided with double-digit nominal growth and an upswing in gross value added. Modi focused his remarks on the headline figures and the economy’s capacity to withstand external shocks. These numbers serve as the initial comprehensive indicator of India’s economic performance in fiscal 2026-27.