31/08/26 | 5:31 pm | gdp

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India economy grows 7.8% in Q1 FY27, PM Modi calls it a ‘herculean feat’

India’s real gross domestic product (GDP) grew 7.8% in the April-June quarter of FY27, accelerating from the year-ago period, while real gross value added (GVA) expanded 8.2%, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.

Prime Minister Narendra Modi termed the 7.8% growth in the first quarter a “herculean feat”, attributing the performance to the collective strength and resilience of the Indian economy despite oil price shocks, supply-chain disruptions and global uncertainties.

“India’s exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat,” PM Modi said in a post on X, adding that the growth came despite oil price shocks and supply-chain issues.

Real GDP at constant prices stood at ₹81.36 lakh crore in Q1 FY27, compared with ₹75.46 lakh crore in the corresponding quarter of FY26. Nominal GDP at current prices increased 10.3% to ₹88.27 lakh crore from ₹80 lakh crore a year earlier.

Real GVA rose to ₹73.82 lakh crore from ₹68.21 lakh crore in the year-ago quarter, registering 8.2% growth. Nominal GVA increased 11.5% to ₹80.53 lakh crore.

Manufacturing remained a key driver of economic activity. Capital goods output increased 15.2% year-on-year, while manufacturing of electrical equipment grew 27%. Production of computer, electronic and optical products rose 12.4%.

External trade also recorded strong growth during the quarter. Exports of goods and services increased 25.8%, while imports rose 30.5%. Exports of transport goods surged 52.2%, while exports of machinery and equipment grew 31.9%.

Domestic demand indicators remained firm, with commercial vehicle sales rising 18.3% and three-wheeler sales increasing 29.7%. Household vehicle registrations grew 15.9%, while registrations of goods transport vehicles rose 20.1%.

The latest GDP estimates follow MoSPI’s introduction of a new national accounts series with 2022-23 as the base year in February 2026. The revised series incorporates updated data and methodology.

For manufacturing GVA, the new series uses a double-deflation approach, under which output and intermediate consumption are deflated separately using relevant producer price indices.

MoSPI said the quarterly GDP estimates are compiled using a benchmark-indicator methodology, with relevant indicators used to extrapolate estimates for the previous financial year.

The ministry also cautioned that the estimates are subject to revision as additional data becomes available and source agencies revise their inputs.

The next quarterly GDP estimates, covering July-September 2026, are scheduled to be released on November 30, 2026.

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