Real GDP grows 7.8% in April-June quarter; nominal GDP rises 10.3% as India’s economy weathers global headwinds
India’s economy expanded 7.8 per cent in the April-June quarter of FY2026-27, sharply exceeding economists’ expectations, with strong domestic activity helping growth withstand geopolitical and external pressures.
India’s real gross domestic product (GDP) grew 7.8 per cent year-on-year in the first quarter, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.
Real GDP at constant prices was estimated at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore in the same quarter a year earlier. Nominal GDP rose 10.3 per cent to Rs 88.27 lakh crore, from Rs 80 lakh crore a year ago.
The quarterly growth figure came in well above expectations. A Reuters poll of 58 economists had forecast GDP growth at 7.1 per cent for the April-June quarter, while a Moneycontrol poll had pegged it at 7.3 per cent. The Reserve Bank of India had earlier estimated Q1 growth at 7 per cent.
The stronger-than-expected print signals that India’s growth momentum remained resilient at the start of the new financial year, even as the economy faced a difficult external environment marked by the ongoing US-Iran conflict, elevated crude oil prices, trade uncertainty and financial-market volatility.
More from BusinessGVA growth at 8.2%
Gross value added (GVA) also showed a strong performance. Real GVA at basic prices grew 8.2 per cent in Q1 FY27 to Rs 73.82 lakh crore, compared with Rs 68.21 lakh crore in the year-earlier period. Nominal GVA rose 11.5 per cent to Rs 80.53 lakh crore.
The latest numbers suggest that activity across the domestic economy remained stronger than anticipated despite concerns that higher energy costs and geopolitical disruptions could weigh on output.
Ahead of the release, economists had pointed to consumer demand, government capital expenditure, manufacturing and construction activity and exports as key supports for the economy.
New GDP series
The Q1 numbers are also significant because they come under India’s new national accounts series with 2022-23 as the base year.
MoSPI had released the new annual and quarterly GDP series in February 2026. The updated estimates incorporate revised data and methodologies, including the newer Producer Price Index, the revised Index of Industrial Production and administrative datasets.
Growth holds up despite external risks
The resilience of the economy comes at a challenging time for India. Global oil prices have risen sharply amid the conflict involving the US and Iran, while the rupee has remained under pressure. The Reserve Bank of India intervened in the foreign exchange market on Monday as Brent crude moved above $90 a barrel and expectations of a US Federal Reserve rate hike increased.
Indian equities also ended lower on Monday, with the Sensex falling more than 300 points and the Nifty closing below 24,100 as investors remained concerned about crude prices, global interest rates and geopolitical risks.
The stronger-than-expected GDP print therefore provides some reassurance about the underlying strength of domestic economic activity, although the outlook for the coming quarters could be more challenging if elevated oil prices persist.
