India’s real GDP grew 7.8% in Q1 FY27, up from 6.9% in the same quarter a year earlier and ahead of the RBI’s 7% projection.
Services and the secondary sector led growth, with real GVA expanding 8.2%, while the tertiary sector grew 10% and the secondary sector 8.6%.
Investment activity strengthened sharply, with gross fixed capital formation rising 11.9%, while private consumption grew 7.1% and exports increased 12%.
India’s economy grew 7.8% year-on-year in the first quarter of FY27, accelerating from 6.9% in the same quarter a year earlier, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. Real GDP stood at ₹81.36 lakh crore in Q1, compared with ₹75.46 lakh crore in Q1 FY26.
The GDP growth data also beat the Reserve Bank of India’s 7.0% projection for the quarter ended June.
1 August 2026
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The expansion was led by the services and secondary sectors. Real GVA grew 8.2%, with the tertiary sector expanding 10%, while the secondary sector grew 8.6%. Agriculture and allied activities recorded more modest growth of 3.6%.
On the expenditure side, gross fixed capital formation rose 11.9%, compared with 5.8% a year earlier, signalling stronger investment activity. Private final consumption expenditure grew 7.1%, while exports increased 12%.
Nominal GDP expanded 10.3% to ₹88.27 lakh crore. The estimates, released under the new 2022-23 base-year series, are subject to subsequent revisions as more data becomes available.
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“Strong GDP growth validates the cyclical upturn in the economy, as reflected in a broad range of high-frequency indicators, including corporate earnings.," Madhavi Arora, Chief Economist, Emkay Global Financial Services said. "This resilience came despite elevated raw-material costs amid the Middle East crisis, suggesting that volumes remain resilient and firms have been able to pass through a meaningful portion of higher input costs. However, the stronger GVA growth of 8.2% appears to reflect a sharp increase in net public-sector subsidies, which outpaced the growth in net indirect taxes,” she added.
