2 days ago
India’s Q1 GDP Grows 7.8% as Reforms Get Credit
India’s economy grew strongly from April through June.
Real GDP increased by 7.8% compared with the same period a year earlier.
This was higher than the Reserve Bank of India’s 7% forecast.
Finance Minister Nirmala Sitharaman said people’s hard work and government reforms helped.
She also said the government managed the economy in an agile way.
Services grew by 10%, and manufacturing grew by 9.2%.
Investment and household spending also increased.
Other ministers said India stayed resilient despite global uncertainty, oil-price shocks and supply-chain problems.
Former NITI Aayog CEO Amitabh Kant said strong domestic demand helped the economy absorb outside shocks.
India’s real GDP grew an estimated 7.8% in the April-June quarter of FY 2026-27.
The growth exceeded the Reserve Bank of India’s 7% forecast and rose from 6.9% a year earlier.
Finance Minister Nirmala Sitharaman credited people’s hard work, government reforms and agile economic management.
Real GVA increased 8.2%, while nominal GDP grew 10.3% during the quarter.
Services, manufacturing, investment and private consumption supported growth despite global uncertainty and supply-chain disruptions.
- Who
- India’s economy, Finance Minister Nirmala Sitharaman, Prime Minister Narendra Modi’s National Democratic Alliance government, Commerce and Industry Minister Piyush Goyal, Petroleum and Natural Gas Minister Hardeep Singh Puri, and former NITI Aayog CEO Amitabh Kant.
- What
- India’s estimated real GDP growth reached 7.8% in Q1 of FY 2026-27, alongside 8.2% real GVA growth.
- Where
- India.
- When
- The quarter covered April-June 2026, and the figures and reactions were reported on August 31, 2026.
- Why
- Sitharaman and other ministers attributed the performance to people’s hard work, government reforms, agile economic management and sector-wide resilience; Kant also cited strong domestic demand and the ability to absorb external shocks.
Key facts
- Real GDP growth
- 7.8% in Q1 FY 2026-27, compared with 6.9% in Q1 a year earlier
- Reserve Bank forecast
- 7% growth for the quarter
- Nominal GDP growth
- 10.3%
- Real GVA growth
- 8.2%
- Sector performance
- Services grew 10%, manufacturing 9.2%, the secondary sector 8.6%, and the primary sector 2.9% at constant prices
- Investment
- Gross fixed capital formation grew 11.9%; investment reached 34.3% of GDP, up from 31.4% a year earlier
- Private consumption
- Private final consumption expenditure grew 7.1%
- External conditions
- Ministers cited global uncertainty, oil-price shocks, geopolitical turbulence, trade fragmentation and supply-chain disruptions
Quotes
Nirmala Sitharaman
India’s Finance Minister
“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.”
businesstoday.in
rediff.com
“At a time when the global economy is facing geopolitical turbulence, trade fragmentation, and uncertainty, India continues to stand out as an oasis of stability and growth.”
businesstoday.in
Sources
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