Prime Minister Narendra Modi has welcomed India’s strong economic performance in the first quarter of financial year 2026-27, after official data showed that real Gross Domestic Product (GDP) expanded by 7.8 per cent between April and June.
The latest growth figure has emerged as a positive indicator for the Indian economy, particularly against the backdrop of geopolitical tensions, disruptions to global supply chains and continuing uncertainty across major international markets.
In a video message shared on social media, Modi credited the people of India for the country’s economic progress and said the latest numbers demonstrated the strength of the nation’s collective efforts. He also criticised the Opposition, alleging that some political voices were attempting to create pessimism despite the economy continuing to expand.
India’s GDP Growth Beats RBI Estimate
The 7.8 per cent real GDP growth recorded in Q1 FY27 was higher than the 7 per cent growth rate earlier projected by the Reserve Bank of India (RBI).
According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), real GDP at constant prices stood at an estimated Rs 81.36 lakh crore during the April-June quarter, compared with Rs 75.46 lakh crore during the corresponding period of FY26.
The stronger-than-expected performance comes as the government and policymakers continue to focus on maintaining economic momentum amid an uncertain global environment.
The RBI has projected 6.7 per cent real GDP growth for the full financial year FY27, after revising its earlier forecast of 6.6 per cent.
Nominal GDP Rises 10.3%
The economy also recorded notable growth when measured at current prices.
India’s nominal GDP was estimated at Rs 88.27 lakh crore in Q1 FY27, compared with Rs 80 lakh crore in the same quarter a year earlier. This represents a 10.3 per cent increase.
Real Gross Value Added (GVA), another important measure of economic activity, increased by 8.2 per cent during the quarter.
The figures indicate that economic activity remained broad-based across several sectors.
Modi Pushes ‘Swadeshi’ and Self-Reliance
Along with highlighting the GDP figures, the Prime Minister used his address to reinforce his call for greater domestic consumption and self-reliance.
Modi urged citizens to give preference to Indian products and support the ‘Swadeshi’ and ‘Vocal for Local’ approach. He also encouraged people to avoid unnecessary foreign travel for leisure and overseas weddings, while advocating the idea of holding weddings in India.
The Prime Minister further called for restraint in non-essential gold purchases, linking such spending decisions with his broader emphasis on strengthening domestic economic activity.
Services and Investment Support Growth
The latest GDP data also points to continued strength in the services sector, which has remained a major contributor to India’s economic expansion.
The financial, real estate, information technology and professional services segment recorded particularly strong growth during the quarter.
Investment activity also improved. Gross Fixed Capital Formation (GFCF) registered double-digit growth, indicating increased capital expenditure and investment in productive assets.
Private consumption continued to expand as well, supporting domestic demand.
Finance Minister Welcomes Economic Numbers
Finance Minister Nirmala Sitharaman also welcomed the latest GDP figures and credited Indian citizens for the country’s economic performance.
She highlighted government reforms and economic management as factors supporting growth and said the government remained focused on expanding opportunities for citizens.
However, the Q1 GDP figures are provisional and can be revised. MoSPI has indicated that improvements in data coverage and changes in source information could affect subsequent estimates.
The next quarterly GDP data, covering July-September 2026, is scheduled to be released on November 30, 2026.
The latest numbers therefore provide a strong opening to FY27, although sustaining this pace through the remaining quarters will depend on domestic demand, investment, inflation, global conditions and the performance of key economic sectors.
