India’s recent GDP data reveals robust 7.8% growth in the April-June quarter, driven by broad-based strength across manufacturing and services sectors, despite geopolitical tensions and external pressures.
India’s economy grew 7.8% in real terms in the April-June quarter of FY2026-27, according to data released by the Ministry of Statistics and Programme Implementation, a reading that came in above economists’ expectations and the Reserve Bank of India’s earlier 7% forecast. The figures show real GDP at constant prices of ₹81.36 lakh crore, compared with ₹75.46 lakh crore in the same quarter a year earlier, underscoring the country’s continued resilience despite a difficult external backdrop.
The latest data point to broad-based strength across the economy. Manufacturing expanded 9.2% in the quarter, while services remained a major support, with financial, real estate, information technology and professional services all contributing strongly. The tertiary sector rose 10%, the secondary sector increased 8.6% and the primary sector grew 2.9%. Real gross value added, which strips out some taxes and subsidies to give a clearer view of underlying activity, advanced 8.2%.
On the spending side, private demand and investment also appeared to hold up well. Reuters reported that consumer spending stayed resilient and private investment showed signs of strengthening, while gross fixed capital formation rose 11.9% at constant prices, indicating firmer capital expenditure and project activity. Private final consumption expenditure increased 7.1%, reinforcing the view that domestic demand helped offset some of the pressure from weaker global conditions.
The growth came despite geopolitical tensions, a delayed south-west monsoon, tariff uncertainty and higher energy prices, all of which have added to the challenges facing Asia’s third-largest economy. Prime Minister Narendra Modi called the performance a “herculean feat” and later posted on X: “7.8% growth. Strong numbers. Even stronger confidence.” Finance Minister Nirmala Sitharaman said the result reflected reforms and economic management. With nominal GDP growth at 10.3%, the figures give the government an upbeat start to the new financial year, though economists will continue to watch oil prices, inflation, the rupee and global developments for signs of strain later in the year.
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