Prime Minister Narendra Modi hails it is a Herculean feat
New Delhi: Despite global headwinds, India’s economy expanded 7.8 per cent in the April-June quarter of FY 2026-27, up from revised 6.9 per cent in the same quarter last year, sharply exceeding economists’ expectations, with strong domestic activity helping growth withstand geopolitical and external pressures, the government said on Monday.
Defying the supply chain disruptions and inflated commodity prices triggered by the US-Iran war, the economy remained resilient with consumption, exports and the robust government’s capital expenditure as well. However, the government said that the stronger-than-expected print has signalled resilience in the country’s growth momentum at the start of the new financial year.
Reacting the data, Prime Minister Narendra Modi said that India’s exemplary GDP growth of 7.8 per cent during Q1 of FY 2026-27 is a Herculean feat. “The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties. Doomsayers were doomed and India bloomed…yet again!” he said on post in social media.,
Union finance minister Nirmala Sitharaman also said that the credit for this strong performance goes to the people of India and their hard work. “Reforms undertaken by the NDA government, together with an agile management of the economy, are bearing results. The NDA government, led by PM Narendra Modi, remains committed to further expanding economic opportunities for all our citizens,” she said in a post on X.
As per the data released by the ministry of statistics and programme implementation (MoSPI), India’s real gross domestic product (GDP) grew 7.8 per cent year-on-year in the first quarter of FY 2026-27. “Real GDP at constant prices was estimated at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore in the same quarter a year earlier, while nominal GDP rose 10.3 per cent to Rs 88.27 lakh crore, from Rs 80 lakh crore a year ago,” the ministry said.
The data, however, showed that gross value added or GVA also remained strong with real GVA at basic prices grew 8.2 per cent in Q1 FY27 to Rs 73.82 lakh crore, compared with Rs 68.21 lakh crore in the year-earlier period. Nominal GVA rose 11.5 per cent to Rs 80.53 lakh crore.
As per the data, manufacturing kept up its solid run, growing 9.2 per cent in Q1 compared to 8.3 per cent a year ago. “Similarly, the electricity sector saw a dramatic turnaround, jumping to 8.9 per cent growth after shrinking 1.8 per cent in the same period last year. Construction also picked up healthy steam, expanding 7.7 per cent against 5.2 per cent last fiscal, giving a solid boost to overall economic activity,” the ministry said.
On the other hand some key primary sectors saw moderation during the first quarter. “Agricultural growth slowed to 3.6 per cent YoY in Q1 FY27 from 4.4 per cent a year earlier, while the mining sector registered a sharp drag, shrinking 2.4 per cent compared to a stellar 12.4 per cent growth in the corresponding period last fiscal,” it said.
Last year, the government’s s goods and services tax (GST) rate cut and income tax reductions likely continued to support household disposable income and demand, helping cushion the impact of rising inflation. But economists expect the recent pickup in private investment to be temporary.
