India’s economy delivered stronger-than-expected growth during the first quarter of the 2026-27 financial year, with real gross domestic product expanding by 7.8%, according to the latest government data.
The growth rate accelerated from 6.9% recorded during the same quarter a year earlier and exceeded the Reserve Bank of India’s previous projection of 7%. The figures indicate continued momentum across major parts of the economy, supported by manufacturing, services, investment, household consumption and exports.
At constant prices, India’s real GDP reached approximately $856.60 billion during the April-June quarter, compared with about $794.48 billion during the corresponding period of the previous year. Meanwhile, nominal GDP increased by 10.3% to approximately $929.35 billion.
Real Gross Value Added, another key measure of economic activity, rose by 8.2% during the quarter to around $777.22 billion. The services sector remained one of the strongest contributors to overall growth, expanding by 10%.
Financial, real estate, information technology and professional services recorded particularly strong momentum, with combined growth of 12.1%. The secondary sector also performed well, growing by 8.6%, while manufacturing expanded by 9.2%.
Industrial activity received further support from strong growth in specific manufacturing segments. Production of electrical equipment increased by 27%, while capital goods production rose by 15.2%, reflecting continued activity in industrial capacity and investment-related sectors.
Spending and investment indicators also showed encouraging trends. Gross fixed capital formation, which measures investment in assets such as infrastructure and equipment, grew by 11.9%. Household consumption increased by 7.1%, while exports recorded growth of 12%.
India’s industrial production expanded by 6.7% in July and registered growth of 6.3% during the April-July period. The Index of Core Industries, which tracks several important infrastructure-related sectors, increased by 4.3%.
Trade performance also remained strong. Combined merchandise and services exports reached approximately $80.14 billion in July, representing a 13.31% increase from a year earlier. Cumulative exports between April and July rose to approximately $316.42 billion, marking year-on-year growth of 13.16%.
Credit growth across key sectors further reflected economic activity. Bank lending to agriculture increased by 17%, while credit to industry and services grew by 20% and 22.9%, respectively.
The government also revised upward its earlier estimates for real GDP growth in the 2023-24, 2024-25 and 2025-26 financial years, reinforcing the picture of sustained economic momentum across recent years.
