Archive · 1 Sep 2026
India’s Q1 FY27 Growth Beats Forecast Despite Iran War Fears
India’s economy grew by 7.8% from April to June 2026.
This was faster than the Reserve Bank of India expected.
Growth was slower than the previous quarter but higher than during the same period last year.
The economy grew despite concerns about the Iran war, oil prices and weaker global demand.
Strong activity inside India helped support the result.
Manufacturing and services both expanded.
Investment also increased compared with last year.
The central bank expects the economy to grow 6.7% during the full financial year.
India’s real GDP grew 7.8% in the April-June quarter of FY27.
Growth exceeded the Reserve Bank of India’s 7% quarterly forecast.
The expansion slowed from 8.6% in the previous quarter but rose from 6.9% a year earlier.
Real GDP reached Rs 81.36 lakh crore, while nominal GDP rose 10.3% to Rs 88.27 lakh crore.
Manufacturing, services and investment strengthened, with growth of 9.2%, 10% and investment at 34.3% of GDP, respectively.
- Who
- India’s economy, with data released by the Ministry of Statistics and Programme Implementation and forecasts from the Reserve Bank of India.
- What
- Real GDP grew 7.8% in the first quarter of fiscal year 2026-27, exceeding the central bank’s 7% forecast.
- When
- The quarter covered April through June 2026; the data was released on August 31, 2026.
- Where
- India.
- Why
- Strong domestic economic activity supported growth despite concerns about the Iran conflict, energy prices, inflation and weaker global demand.
- Q1 FY27 real GDP growth
- 7.8%
- Previous-quarter growth
- 8.6%
- Year-ago Q1 growth
- 6.9%
- Reserve Bank quarterly forecast
- 7%
- Full-year FY27 projection
- 6.7%
- Q1 FY27 real GDP
- Rs 81.36 lakh crore, compared with Rs 75.46 lakh crore a year earlier
- Q1 FY27 nominal GDP
- Rs 88.27 lakh crore, up 10.3% from Rs 80 lakh crore a year earlier
- Other indicators
- Real GVA grew 8.2%, nominal GVA grew 11.5%, manufacturing grew 9.2%, services grew 10%, and investment reached 34.3% of GDP
Sources
India's Economy Outperforms Expectations With 7.8% Growth
GDP grows 7.8%, India retains fastest-growing economy tag
India GDP growth hits 7.8 per cent in Q1 FY27, beats RBI forecast despite Iran war fears - Telegraph India
India’s economy grows world-beating 7.8 pc in Q1 despite Iran war fears
