India’s GDP Growth Accelerates to 7.8% in April-June Quarter, Beats RBI Estimate

India’s economy expanded at a faster-than-expected pace in the first quarter of the financial year 2026-27, with Gross Domestic Product (GDP) growing 7.8 per cent during the April-June period, official data released on Monday showed. The performance was significantly stronger than the 6.9 per cent growth recorded during the corresponding quarter of the previous financial year.

The latest figure also exceeded the Reserve Bank of India’s earlier projection of 7 per cent for the quarter. However, growth moderated from the 8.6 per cent expansion recorded in the preceding quarter.

Data released by the Ministry of Statistics and Programme Implementation showed that several services-related sectors contributed to the expansion. Financial services, real estate, information technology and professional services emerged as important drivers of economic activity during the quarter.

Real GDP, which measures economic output after adjusting for inflation, was estimated at Rs 81.36 lakh crore in the first quarter of FY27, compared with Rs 75.46 lakh crore during the same period a year earlier. The figures indicate that the economy has maintained its growth momentum despite continued uncertainties in the global environment.

Nominal GDP also recorded a notable improvement. It increased by 10.3 per cent during the April-June quarter, compared with 8.1 per cent growth in the corresponding period last year. Nominal GDP was estimated at Rs 88.27 lakh crore.

Prime Minister Narendra Modi welcomed the latest figures, describing the 7.8 per cent expansion as a strong achievement. He attributed the performance to the collective efforts of Indians and said the economy had continued to expand despite external challenges, including fluctuations in oil prices and disruptions affecting global supply chains.

Union Finance Minister Nirmala Sitharaman also welcomed the data, crediting the performance to the efforts of citizens, economic reforms and the government’s management of the economy.

Meanwhile, industrial activity showed some moderation in July. The Index of Industrial Production grew 6.7 per cent year-on-year, compared with 8.8 per cent in June. Manufacturing expanded 7.3 per cent, while electricity and gas supply recorded 8.7 per cent growth. Mining and quarrying, however, contracted 0.9 per cent during the month.