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GDP growth accelerates to 7.8% in Q1, beats forecasts amid global crisis

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India’s economy grew 7.8 per cent in the April-June quarter of FY27, significantly above economists’ projections, with robust domestic activity helping it withstand external and geopolitical headwinds arising from the West Asia crisis.The pace, which keeps India the world’s fastest-growing major economy, also surpassed the Reserve Bank of India’s quarterly projection of 7 per cent, underlining the resilience of domestic demand despite heightened global uncertainties.The economy is projected to grow 6.7 per cent in the full 2026-27 fiscal year, according to RBI estimates.Chief Economic Adviser V Anantha Nageswaran said the Indian economy had shown sustained resilience and performed well despite global concerns. He said manufacturing and services sectors fared “quite well” despite the West Asia crisis.He attributed the strong first-quarter performance to the government’s efforts to prevent input-side disruptions.Commenting on the GDP figures, Finance Minister Nirmala Sitharaman said on X, “The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA government, together with agile management of the economy, are bearing results.”Reacting to Opposition criticism of the economic data, Prime Minister Narendra Modi hailed the growth numbers and took a swipe at critics, saying, “Doomsayers were doomed and India bloomed… yet again!”Calling the 7.8 per cent GDP growth a “herculean feat”, PM Modi said the country’s performance reflected the strength of its people despite global disruptions. “The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues amid global uncertainties,” he wrote on X.India’s real gross domestic product (GDP) increased 7.8 percent year-over- year (YoY) in the first quarter, against 6.9 per cent during the Q1 of FY25-26, according to the figures released by the Ministry of Statistics and Program Implementation on Monday.In Q1 FY27, the estimated real GDP at constant prices was Rs 81.36 lakh crore, up from Rs 75.46 lakh crore in the same period the previous year. The nominal GDP increased from Rs 80 lakh crore to Rs 88.27 lakh crore, a 10.3 per cent increase.Gross value added (GVA) in Q1 of FY26-27 is estimated at Rs 73.82 lakh crore, against Rs 68.21 lakh crore in Q1 of FY25-26, showing a growth rate of 8.2 per cent. While the nominal GVA in Q1 of FY26-27 is estimated at Rs 80.53 lakh crore, against Rs 72.24 lakh crore in Q1 of FY25-26, a growth rate of 11.5 per cent.Sectoral statistics revealed that agricultural output increased at a strong rate of 3.6 per cent in the June quarter despite the delayed start of the monsoon, compared to 4.4 per cent growth in the same quarter last year.During the same period, manufacturing growth increased from 8.3 per cent to 9.2 per cent. The financial, real estate, and IT sectors of the services industry saw double-digit growth of 12.1 per cent, up from 8.8 per cent over the same time.

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