NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi has lauded India’s economic growth of 7.8% in the April to June quarter of fiscal 2026-27. The latest official figures indicate that economic activity remained robust across manufacturing, services, consumption, and investment sectors. Modi described this growth rate as a “herculean feat” during a time characterized by global economic challenges. He pointed to oil price shocks, supply chain disruptions, and widespread uncertainty as obstacles confronting the economy. The Prime Minister also praised the perseverance and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product for the quarter reached ₹81.36 lakh crore. This compares to ₹75.46 lakh crore in the same period last year. Nominal GDP experienced a 10.3% rise, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added (GVA) increased by 8.2% to ₹73.82 lakh crore, while nominal GVA climbed 11.5% to ₹80.53 lakh crore, reflecting higher current-price output.
Manufacturing grew by 9.2% year-on-year, making it one of the primary drivers of the quarterly expansion. The financial, real estate, and professional services sector also expanded by 12.1%. Agriculture, livestock, forestry, and fishing recorded a growth rate of 3.6%. Household consumption improved by 7.1%, and gross fixed capital formation surged nearly 12%. Investment’s share of nominal GDP reached 34.3%, up from 31.4% in the same quarter of the previous fiscal year.
Manufacturing and Investment Drive Economic Growth
Various industrial and demand indicators also posted year-on-year improvements during the April to June period. Capital goods production rose by 15.2%, and consumption of finished steel increased by 8.3%. Cement output grew by 8.9%, indicating active construction and infrastructure sectors. Sales of commercial vehicles went up by 18.3%, and household vehicle registrations increased by 15.9%. Data from the government also revealed exports of goods and services increased by 25.8%, while imports grew by 30.5% over the same three months.
The Ministry of Statistics and Programme Implementation now measures national output based on a 2022-23 base year. This revised series replaced the previous 2011-12 base and incorporated updated data sources and statistical approaches. Authorities began employing this new framework in February 2026. The adjustments aim to better reflect recent trends in production, expenditure, and overall economic activity. Subsequently, the ministry integrated newer industrial production and producer price data into its national accounts estimates for future GDP calculations.
Modi Emphasizes Economic Resilience Amid Global Challenges
Following the release of India’s official GDP estimate for the 2026-27 fiscal year, Modi highlighted the 7.8% growth rate, noting external pressures that impacted businesses and consumers during the quarter. Rising energy costs can influence production, transportation, and household expenses across the economy. India’s heavy dependence on imported crude oil to meet domestic needs underscores this vulnerability. Supply chain disruptions can also impact industrial inputs and trade flows, increasing operational pressures on companies reliant on overseas supplies.
The data from April to June indicated growth across key segments of India’s economy at the start of the new fiscal year. Manufacturing, services, agriculture, household spending, and fixed investment all showed expansion compared to the previous year. The 7.8% increase in GDP was accompanied by double-digit nominal growth and an increase in gross value added. Modi focused his commentary on the headline growth figure and the economy’s resilience, with these numbers providing policymakers, businesses, and investors with the first comprehensive snapshot of India’s economic performance for fiscal 2026-27.