2 days ago
India’s Q1 GDP Growth Hits 7.8% as Modi Hails Feat
India’s economy grew 7.8% between April and June 2026.
This was faster than the Reserve Bank of India’s earlier estimate of 7%.
Growth was slower than in the previous three months but faster than in the same period last year.
Services such as finance, real estate, information technology and professional work helped the economy.
Manufacturing also grew strongly.
Prime Minister Narendra Modi called the result a very difficult achievement.
Finance Minister Nirmala Sitharaman said Indians’ hard work, government reforms and economic management helped.
Separately, factories and other industries grew 6.7% in July.
Mining became smaller, but manufacturing and electricity and gas supply grew.
India’s real GDP grew 7.8% in April-June 2026, exceeding the Reserve Bank of India’s 7% estimate.
Q1 growth was below the previous quarter’s 8.6% but above the 6.8%-6.9% reported for the same quarter a year earlier.
Financial, real estate, information technology and professional services led services growth, while manufacturing expanded 9.2%.
Prime Minister Narendra Modi called the result a “herculean feat,” citing global uncertainty, oil shocks and supply-chain disruptions.
Industrial output grew 6.7% year-on-year in July, supported by manufacturing and electricity and gas, while mining and quarrying contracted 0.9%.
- Who
- India’s Ministry of Statistics and Programme Implementation, National Statistics Office, Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman reported or commented on the figures.
- What
- India’s real GDP grew 7.8% in Q1 FY 2026-27, while industrial output grew 6.7% year-on-year in July 2026.
- Where
- India.
- When
- GDP data covered April-June 2026; industrial-output data covered July 2026 and was released afterward.
- Why
- Growth was supported by services, manufacturing, investment and private consumption, while July industrial production was supported by manufacturing and electricity and gas supply.
Government and BJP View
Opposition Criticism
Meaning of the GDP figures
Government and BJP View
Prime Minister Narendra Modi described the 7.8% growth as exemplary and a “herculean feat,” while Finance Minister Nirmala Sitharaman credited Indians’ hard work, government reforms and economic management.
Opposition Criticism
The article reports that Congress leader Rahul Gandhi had previously described India’s economy as “dead” and criticized the government’s economic policies, including its alleged links to Adani.
Impact of global conditions
Government and BJP View
Modi said India maintained strong growth despite wars, oil-price shocks, supply-chain disruptions and broader global uncertainty.
Opposition Criticism
The reported opposition criticism emphasized domestic economic problems and rejected the government’s positive characterization of the economy.
Key facts
- Real GDP
- ₹81.36 lakh crore in Q1 FY 2026-27, compared with ₹75.46 lakh crore a year earlier
- Real GDP growth
- 7.8% in Q1 FY 2026-27
- RBI estimate
- 7% for the June quarter
- Nominal GDP
- ₹88.27 lakh crore, representing 10.3% growth
- Real GVA
- ₹73.82 lakh crore, representing 8.2% growth
- Sector performance
- Manufacturing grew 9.2%, services 10.0% and agriculture 3.6% in Q1
- July industrial output
- 6.7% year-on-year; manufacturing grew 7.3% and electricity and gas supply 8.7%
- July mining output
- Mining and quarrying contracted 0.9% year-on-year
Quotes
Nirmala Sitharaman
Union Finance Minister of India
“The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results.”
NDTV
“Estimated growth of real GDP in Q1 of FY 2026-27 is 7.8 per cent. Nominal GDP in Q1 of FY 2026-27 is estimated to have grown by 10.3 per cent, while Real GVA has recorded growth of 8.2 per cent.”
livemint.com
Sources
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