NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s 7.8% expansion in the April to June period of fiscal 2026-27. Official data confirmed that economic momentum remained steady across sectors including manufacturing, services, consumption, and investment. Modi characterized this growth rate as a “herculean feat” amid a backdrop of global economic challenges. He pointed to oil price shocks, disruptions in supply chains, and broader economic uncertainty as key hurdles. The Prime Minister also praised 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 in the first quarter, up from ₹75.46 lakh crore in the same period last year. Nominal GDP saw a 10.3% rise to ₹88.27 lakh crore from ₹80 lakh crore. Meanwhile, real gross value added increased by 8.2% to ₹73.82 lakh crore. Nominal GVA jumped 11.5% to ₹80.53 lakh crore, reflecting higher output at current prices.
The manufacturing sector grew by 9.2% compared to the previous year, emerging as a significant driver of quarterly growth. The financial, real estate, and professional services sectors expanded by 12.1%. The agriculture, livestock, forestry, and fishing sector grew by 3.6%. Household consumption rose by 7.1%, and gross fixed capital formation nearly doubled with an increase of approximately 12%. Investment accounted for 34.3% of nominal GDP, up from 31.4% in the corresponding quarter of the prior fiscal year.
Manufacturing and Investment Drive Economic Expansion
Various industrial and demand indicators also demonstrated year-on-year improvements during the April to June window. Capital goods production increased by 15.2%, and finished steel consumption grew by 8.3%. Cement production rose by 8.9%, further indicating activity in construction and infrastructure sectors. Commercial vehicle sales surged by 18.3%, while household vehicle registrations went up by 15.9%. Additionally, government data revealed a 25.8% rise in exports of goods and services, with imports increasing by 30.5% over the same period.
The Ministry of Statistics and Programme Implementation has adopted a new methodology to measure national output, utilizing a 2022-23 base year. This revised series replaces the previous 2011-12 base and incorporates updated data sources and statistical techniques. The new framework was implemented in February 2026 to better capture recent trends in production, expenditure, and economic activity. Later, the ministry integrated newer industrial production and producer price data into its national accounts, refining subsequent GDP estimates.
Modi Emphasizes Economic Resilience Amid Global Challenges
Following the release of India’s initial GDP estimate for the 2026-27 fiscal year, Modi highlighted the 7.8% growth rate while acknowledging external pressures that impacted industries and consumers during the quarter. Elevated energy costs can influence production, transportation, and household expenses across the economy. India’s reliance on imported crude oil to satisfy domestic needs makes it vulnerable to international price fluctuations. Disruptions in supply chains can further impact industrial inputs and trade flows, putting additional strain on companies dependent on overseas supplies.
The data from April to June reflect growth across major segments of India’s economy at the start of the new financial year. Manufacturing, services, agriculture, household spending, and fixed investment all experienced increases compared to the same period last year. The 7.8% growth in GDP was accompanied by double-digit nominal growth and an increase in gross value added. Modi focused his remarks on the headline figures and the economy’s capacity to withstand external shocks. These figures serve as the first comprehensive indicator of India’s economic performance in the current fiscal year.