Strong consumption, manufacturing and investment help India withstand global economic shocks
India’s economy recorded real GDP growth of 7.8% in the April–June quarter of FY 2026–27, delivering a stronger-than-expected start to the financial year.
The latest figures released by the Ministry of Statistics and Programme Implementation (MoSPI) put real GDP at approximately ₹81.36 lakh crore, compared with ₹75.46 lakh crore in the corresponding quarter of the previous financial year. Nominal GDP grew by 10.3%, while real Gross Value Added (GVA) increased by 8.2%.
The performance exceeded the Reserve Bank of India’s 7% projection and market expectations. Manufacturing was one of the major contributors, expanding by 9.2%, while the financial, real estate, IT and professional-services segment recorded particularly strong growth.
The economy’s performance is notable because it came amid considerable external pressures, including the West Asia conflict, volatile energy prices, global supply-chain disruptions and uncertainty over trade policies. Strong domestic demand, government capital expenditure, exports and investment helped cushion those shocks.
Prime Minister Narendra Modi welcomed the figures, calling the growth an “exemplary” and “herculean feat.” The government has presented the numbers as evidence of India’s economic resilience.
However, economists have also pointed to challenges ahead. High crude-oil prices, inflation, a potentially uneven monsoon and geopolitical uncertainty could affect growth during the remaining quarters.
Key figures
- GDP growth: 7.8%
- Nominal GDP growth: 10.3%
- Real GVA growth: 8.2%
- Manufacturing growth: 9.2%
- Financial services and related sectors: 12.1%