India’s economy expanded by 7.8 per cent in the April-June quarter of FY 2026-27, exceeding the Reserve Bank of India’s earlier projection of 7 per cent and signalling continued economic momentum despite uncertainty in the global economy.
According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), real Gross Domestic Product (GDP), measured at constant prices, increased to an estimated Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore during the same period of the previous financial year.
MoSPI said the latest figures showed that the Indian economy has maintained its growth momentum despite challenging global conditions.
At current prices, India’s nominal GDP was estimated at Rs 88.27 lakh crore during the April-June quarter, compared with Rs 80 lakh crore in Q1 FY26. This represents a year-on-year increase of 10.3 per cent.
Services sector leads economic expansion
The latest quarterly estimates showed strong performance across several major sectors. Real Gross Value Added (GVA) grew by 8.2 per cent, while nominal GVA increased by 11.5 per cent during the quarter.
The services-driven tertiary sector recorded 10 per cent growth at constant prices. Financial, real estate, information technology and professional services were among the key contributors, with the segment registering 12.1 per cent growth in Q1 FY27.
The secondary sector, which includes manufacturing and construction-related activities, expanded by 8.6 per cent at constant prices.
Agriculture records 3.6% growth
The primary sector grew by 2.9 per cent, with agriculture and allied activities providing a significant contribution. The agriculture and allied sector recorded growth of 3.6 per cent during the first quarter.
The latest figures indicate that growth was not restricted to the services sector, with investment and consumption also supporting economic activity.
Investment and consumer spending remain strong
Gross Fixed Capital Formation (GFCF), a key indicator of investment activity, grew by 11.9 per cent at constant prices in Q1 FY27. This was substantially higher than the 5.8 per cent growth recorded in the corresponding quarter of FY26.
Private Final Consumption Expenditure (PFCE), which tracks household consumption, also increased by 7.1 per cent during the quarter.
The stronger-than-expected GDP figures come against the backdrop of continuing global economic uncertainties. With growth surpassing the RBI’s 7 per cent forecast, the latest numbers provide a positive indication of the underlying strength of India’s domestic economy at the beginning of FY27.
