India’s GDP Growth Surges to 7.8% in Q1 FY27, Beats Expectations
Strong manufacturing, investment and domestic demand drive economic expansion despite global uncertainties
India’s economy recorded a stronger-than-expected growth of 7.8% in the April–June quarter of FY 2026–27, according to the latest data released by the Ministry of Statistics and Programme Implementation (MoSPI).
The growth rate surpassed the 7% projection of the Reserve Bank of India (RBI) and economists’ expectations of around 7.1%. However, it was lower than the revised 8.6% growth recorded in the previous quarter.
Manufacturing and services provide major boost
The latest figures point to broad-based economic activity. The manufacturing sector grew by 9.2%, while financial, real estate, IT and professional services recorded particularly strong performance. Gross Value Added (GVA) at constant prices increased by 8.2% during the quarter.
Investment also remained a key contributor to growth. Strong domestic consumption, government capital expenditure and increased private investment helped the economy maintain momentum despite uncertainty in global markets.
Growth comes amid global challenges
India’s economic performance comes against the backdrop of geopolitical tensions, elevated crude oil prices and concerns over global trade and inflation. Analysts have nevertheless highlighted the resilience of domestic demand and investment as important factors supporting growth.
The latest GDP numbers have also strengthened expectations that India could maintain growth of more than 7% during the financial year, although rising energy prices, inflationary pressures and global uncertainty remain key risks.
Nominal GDP grows 10.3%
According to MoSPI, India’s real GDP in Q1 FY27 was estimated at ₹81.36 lakh crore, compared with ₹75.46 lakh crore in the corresponding quarter of the previous year. Nominal GDP rose 10.3% to ₹88.27 lakh crore.
The stronger-than-anticipated quarterly performance reinforces India’s position among the fastest-growing major economies and provides a positive start to FY 2026–27.