Business
oh-Prakash K.L.
India’s economy grew 7.8 percent in the April-June fiscal year 2026-27, sharply exceeding economists’ expectations, with strong domestic activity helping growth resist geopolitical and external pressures.
According to the latest data from the Ministry of Statistics and Program Implementation (MoSPI), real gross domestic product (GDP) at constant prices stood at ₹81.36 crore for the April-June period, up from ₹75.46 crore in the same quarter last year. In nominal terms, GDP increased 10.3 percent to ₹88.27 crore from ₹80 crore a year earlier.
Official data released on Monday showed India’s economy grew 7.8 percent in the first quarter of the 2026-27 fiscal year as strong domestic demand offset persistent global pressures.
A Reuters poll of 58 economists had forecast growth of 7.1 percent. The Reserve Bank of India had earlier forecast 7 percent growth for the quarter.
Economists said the strong performance underscores the underlying resilience of the domestic economy at a time when elevated oil prices, global trade uncertainty and financial market turbulence, exacerbated by the ongoing conflict between the United States and Iran, have clouded the outlook for many emerging markets.
Gross value added (GVA), a key indicator of domestic production, also increased. Real GVA at basic prices rose 8.2% to ₹73.82 crore in the first quarter of FY27 compared to ₹68.21 crore in the corresponding period last year. According to the data, nominal gross value added rose 11.5% to ₹80.53 crore.
Ahead of the data, analysts pointed to resilient consumer spending, higher government capital spending, and buoyant activity in manufacturing, construction and exports as key drivers of growth.
The latest figures also mark the first quarterly GDP report under India’s revised System of National Accounts, which now uses 2022-23 as the base year. \