New Delhi, Sept 1:
India’s economy grew by a stronger-than-expected 7.8 per cent in the April-June quarter of 2026-27, retaining its position as the world’s fastest-growing major economy despite geopolitical tensions, energy market disruptions and global uncertainty.
The first-quarter growth was higher than the 7 per cent expansion forecast by the Reserve Bank of India and significantly above the 6.9 per cent recorded in the corresponding quarter of 2025-26.
Prime Minister Narendra Modi described the performance as a “herculean feat”, saying India’s domestic economic strength had helped the country withstand oil price shocks, supply-chain disruptions and uncertainty arising from the conflict in Iran.
In a post on X, Modi said those questioning the country’s economic performance had been proved wrong, asserting that India’s growth momentum remained strong despite global headwinds.
Finance Minister Nirmala Sitharaman also credited the performance to economic reforms and what she described as agile management of the economy.
According to data released by the Ministry of Statistics and Programme Implementation, real GDP at constant prices stood at an estimated Rs 81.36 lakh crore in Q1 of 2026-27, compared with Rs 75.46 lakh crore in the year-ago period.
Nominal GDP at current prices rose 10.3 per cent to Rs 88.27 lakh crore from Rs 80 lakh crore in the corresponding quarter.
Gross Value Added (GVA) at basic prices grew 8.2 per cent in real terms to Rs 73.82 lakh crore from Rs 68.21 lakh crore.
The manufacturing sector was among the key contributors, with GVA growing 9.2 per cent. The secondary sector as a whole expanded 8.6 per cent.
Agriculture, livestock, forestry and fishing recorded 3.6 per cent growth, while mining and quarrying contracted 2.4 per cent.
Investment activity also strengthened. Gross Fixed Capital Formation, a measure of investment in the economy, increased 11.9 per cent in the first quarter, compared with 5.8 per cent growth in the year-ago period.
Chief Economic Adviser V Anantha Nageswaran said domestic economic momentum remained strong, supported by high-frequency indicators and export performance.
However, economists cautioned that geopolitical tensions, global trade-policy uncertainty, energy prices and weather-related risks could weigh on growth in the coming quarters.
The latest figures nevertheless underline the resilience of the Indian economy at a time when the Iran conflict and disruptions in global energy markets have created fresh uncertainty for major economies.