The nominal GDP, which includes the impact of inflation, rose by 8.8% to ₹86.05 lakh crore, up from ₹79.08 lakh crore in Q1 FY25. At constant prices, real GDP was estimated at ₹47.89 lakh crore, up from ₹44.42 lakh crore a year earlier.
The expansion was led by a buoyant services sector, which grew 9.3%, accelerating from 6.8% in Q1 FY25. This strong services performance helped push Gross Value Added (GVA) growth to 7.6%, compared to 6.6% a year earlier. Real GVA for the quarter stood at ₹44.64 lakh crore, while nominal GVA was ₹78.25 lakh crore—both reflecting annual growth of 8.8%.
Other sectors also showed strong results. Agriculture and allied activities grew by 3.7%, a notable rise from 1.5% in the year-ago period. The manufacturing and construction sectors, key parts of the secondary economy, expanded by 7.7% and 7.6% respectively. However, mining and quarrying contracted by 3.1%, while the electricity and utilities segment saw a muted growth of just 0.5%.
On the demand side, Government Final Consumption Expenditure (GFCE) saw a sharp rebound, growing by 9.7% in nominal terms, up from 4.0% in Q1 FY25. Private Final Consumption Expenditure (PFCE) rose by 7.0% in real terms, slightly lower than the 8.3% seen last year. Meanwhile, Gross Fixed Capital Formation (GFCF), an indicator of fixed investment, climbed 7.8%, compared to 6.7% in the previous year.
Commenting on the data, Sujan Hajra, Chief Economist and Executive Director at Anand Rathi Wealth Ltd, said: “India’s first quarter GDP numbers have once again surprised on the upside, with growth coming in substantially stronger than expected. At 7.8%, India remains the fastest growing major economy in the world. The picture is one of balanced momentum: on the supply side, manufacturing and construction are expanding at nearly 8%, while services are soaring above 9%—and but for the flood-induced setback to mining, the outcome would have been even stronger.”
He added that demand-side performance was equally broad-based. “Private consumption and investment both rose by 7–8%, and government spending by close to 10%. This reflects the stellar performance of the Indian economy and its clear outperformance against peers in an uncertain global environment.”
While Hajra noted some risks, such as the recent 50% U.S. tariff on Indian exports, he remained optimistic: “With reforms gaining traction and inflation staying modest, India continues to stand out as the most compelling macro story in a gloomy world. Growth for the full year is still likely to average around 6.5%, even after factoring in tariff headwinds, while nominal GDP growth in the high single digits supports corporate earnings expansion of 11–13%. India’s macro strength provides a robust foundation for the equity market outlook.”
The NSO’s data release includes comprehensive GDP and GVA estimates at both constant (2011–12) and current prices, giving analysts a detailed view of sector-wise and expenditure-side performance.
With this strong Q1 showing, India has reinforced its position as the fastest-growing major economy, even amid global uncertainties.
