NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s impressive 7.8% rise in economic activity during the April to June quarter of fiscal 2026-27. He described this performance as a “herculean feat” following official reports that indicate sustained growth across key sectors of the economy. Modi emphasized that the outcome demonstrated the collective strength and resilience of India’s population. He also acknowledged the challenges posed by oil price shocks, disruptions in supply chains, and global uncertainty during this period.
The Ministry of Statistics and Programme Implementation reported the real gross domestic product at ₹81.36 lakh crore for the quarter. This compares to ₹75.46 lakh crore in the same quarter of the previous year. Nominal GDP hit ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. The measure of economic activity known as real gross value added grew by 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore.
Manufacturing output increased by 9.2% in this period, with financial, real estate, and professional services expanding by 12.1%. The agriculture sector, including livestock, forestry, and fishing, grew by 3.6%. Household consumption, a key component of domestic demand, saw a 7.1% rise. Investment activity also gained momentum, with gross fixed capital formation climbing close to 12% from the previous year. Its share of nominal GDP reached 34.3%, up from 31.4% in the same quarter last year.
Strong investment and manufacturing drive overall growth
The quarterly results were supported by several indicators showing consistent year-on-year improvements. Production of capital goods surged by 15.2%, and finished steel consumption increased by 8.3%. Cement production grew by 8.9%, and sales of commercial vehicles jumped by 18.3%. Vehicle registrations for households also rose by 15.9%. Data from the government revealed that exports of goods and services increased by 25.8%, while imports grew by 30.5% during April to June.
India has adopted a new national accounts framework based on a 2022-23 base year, replacing the earlier 2011-12 system. The statistics ministry launched this revised series in February 2026, integrating new data sources and updated methodologies. It later incorporated recent industrial production and producer price data into the national accounts. August’s updated figures indicated a real GDP growth rate of 7.8% for fiscal 2025-26, slightly higher than the initial provisional estimate of 7.7%.
Modi underscores resilience amid global challenges
Modi linked the recent GDP growth to India’s capacity to sustain economic activity despite difficult international conditions. His comments followed the release of the quarterly national accounts on August 31. The Prime Minister pointed to elevated oil prices and supply chain pressures as key obstacles facing the economy. Since India imports most of its crude oil, energy costs significantly influence inflation, trade balances, and production expenses for both businesses and households.
These latest figures mark the first official GDP estimate 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 data demonstrated growth across manufacturing, services, agriculture, household consumption, and investments. Modi’s remarks centered on the 7.8% headline figure and the economy’s resilience, positioning the national output data as the key highlight of his commentary.