THEBUSINESSBYTES
BUREAU
NEW
DELHI, AUGUST 31, 2026
India’s real gross
domestic product (GDP) grew 7.8 per cent in the April-June quarter of FY27,
accelerating from the year-ago period, while real gross value added (GVA)
expanded 8.2 per cent, according to data released by the Ministry of Statistics
and Programme Implementation (MoSPI) on Monday.
Prime Minister
Narendra Modi described the 7.8 per cent growth in the first quarter as a
“herculean feat”, attributing the performance to the collective strength and
resilience of the Indian economy despite oil price shocks, supply-chain
disruptions and global uncertainties.
“India’s exemplary GDP growth of 7.8% during
Q1 of FY 2026-27 is a herculean feat,” Modi said in a post on X, adding that
the expansion came despite oil price shocks and supply-chain issues.
Real GDP at constant
prices stood at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh
crore in the corresponding quarter of FY26. Nominal GDP at current prices
increased 10.3 per cent to Rs 88.27 lakh crore from Rs 80 lakh crore a year
earlier.
Real GVA rose to Rs
73.82 lakh crore from Rs 68.21 lakh crore in the year-ago quarter, registering
growth of 8.2 per cent. Nominal GVA increased 11.5 per cent to Rs 80.53 lakh
crore.
Manufacturing
remained a key driver of economic activity, with capital goods output rising
15.2 per cent year-on-year. Manufacturing of electrical equipment grew 27 per
cent, while production of computer, electronic and optical products increased
12.4 per cent.
External trade also
recorded robust growth during the quarter. Exports of goods and services
increased 25.8 per cent, while imports rose 30.5 per cent. Exports of transport
goods surged 52.2 per cent, while exports of machinery and equipment grew 31.9
per cent.
Domestic demand
indicators remained firm, signalling sustained economic activity. Commercial
vehicle sales rose 18.3 per cent and three-wheeler sales increased 29.7 per
cent. Household vehicle registrations grew 15.9 per cent, while registrations
of goods transport vehicles climbed 20.1 per cent.
The latest GDP
estimates come after MoSPI introduced a new national accounts series with
2022-23 as the base year in February 2026. The revised series incorporates
updated data and methodology aimed at providing a more comprehensive measure of
economic activity.
For manufacturing
GVA, the new series adopts a double-deflation approach, under which output and
intermediate consumption are deflated separately using relevant producer price
indices.
MoSPI said quarterly
GDP estimates are compiled using a benchmark-indicator methodology, with
relevant indicators used to extrapolate estimates for the previous financial
year.
The ministry, however, cautioned that the estimates are subject to revision as additional data becomes available and source agencies revise their inputs.
The next quarterly GDP estimates, covering July-September 2026, are scheduled to be released on November 30, 2026.
