Q1 GDP growth accelerates to 7.8%

India’s economic growth is estimated at 7.8 per cent in the first quarter of 2026-2027, when compared to 6.9 per cent in the comparable period last year.

Listen to this article

Real GDP or GDP at Constant Prices in Q1 of FY 2026-27 is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in Q1 of FY 2025-26, The Ministry of Statistics and Programme Implementation (MoSPI) said in a statement.

Nominal GDP or GDP at Current Prices in Q1 of FY 2026-27 is estimated at Rs 88.27 lakh crore, against Rs 80.00 lakh crore in Q1 of FY 2025-26, showing a growth rate of 10.3 per cent.

Real Gross Value Added (GVA) in Q1 of FY 2026-27 is estimated at Rs 73.82 lakh crore, against Rs 68.21 lakh crore in Q1 of FY 2025-26, showing a growth rate of 8.2 per cent. Nominal GVA in Q1 of FY 2026-27 is estimated at Rs 80.53 lakh crore, against Rs 72.24 lakh crore in Q1 of FY 2025-26, showing a growth rate of 11.5 per cent.

Tertiary sector has boosted the performance of the economy by registering growth of 10 per cent at Constant prices, mainly driven by the ‘Financial, Real Estate, IT and Professional Services’ sector which has observed 12.1 per cent growth during the Q1, FY 2026-27.

Secondary sector has registered a growth of 8.6 per cent at Constant prices.

Primary sector has observed 2.9 per cent growth rate at Constant prices mainly contributed by the performance of ‘Agriculture and Allied’ sector which registered 3.6 per cent growth during Q1 of FY 2026-27.

On the Expenditure-side, Gross Fixed Capital Formation (GFCF) recorded Double-digit (11.9 per cent) growth rate at Constant prices during Q1 of FY 2026-27, against the growth of 5.8 per cent in Q1 of FY 2025-26.

Private Final Consumption Expenditure (PFCE) registered a growth of 7.1 per cent at Constant prices during the quarter.

Prime Minister Narendra Modi termed the performance as a “herculean feat”.

The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties. Doomsayers were doomed and India bloomed…yet again!, he said.

“Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results,” Union Finance Minister Nirmala Sitharaman said.

GDP growth continued to outperform expectations in the first quarter of this fiscal, despite geopolitical headwinds stemming from the West Asia conflict, Crisil said.

The resilience of growth underscores the economy’s robust domestic fundamentals and its ability to navigate an increasingly uncertain global environment, it said.

The ratings firm increases its GDP growth forecast for this fiscal to 7 per cent from 6.6 per cent.

However, growth is likely to moderate in the second half of the fiscal as the boost from GST rate rationalisation is expected to wane and a less favourable statistical base effect will likely temper on-year growth prints. Moreover, risks from a below-normal monsoon and a challenging global environment persist, it said.

Latest

India-NZ FTA to come into effect from 20 Oct

The FTA was signed on 27th April 2026 at...

Premier Commissions India’s Largest Solar Cell Facility in AP

The facility is spread across 101 acres. Built for...

Dilip Buildcon sells stake in Under-Construction Solar Portfolio

As a part deal the company will divest its...

Indian Oil okays investment in Thoothukudi pipeline project

The proposed pipeline will originate from the Kochi LNG...

Newsletter

Don't miss

India-NZ FTA to come into effect from 20 Oct

The FTA was signed on 27th April 2026 at...

Premier Commissions India’s Largest Solar Cell Facility in AP

The facility is spread across 101 acres. Built for...

Dilip Buildcon sells stake in Under-Construction Solar Portfolio

As a part deal the company will divest its...

Indian Oil okays investment in Thoothukudi pipeline project

The proposed pipeline will originate from the Kochi LNG...

Stellantis buys remaining stake in India JV

With the stake buy, Stellantis, whose portfolio includes Abarth,...

India-NZ FTA to come into effect from 20 Oct

The FTA was signed on 27th April 2026 at Bharat Mandapam, New Delhi, by Union Minister of Commerce and Industry Piyush Goyal and New...

Premier Commissions India’s Largest Solar Cell Facility in AP

The facility is spread across 101 acres. Built for high-throughput, digitally enabled manufacturing, the facility can produce approximately 88,000 solar cells per hour. Following...

Dilip Buildcon sells stake in Under-Construction Solar Portfolio

As a part deal the company will divest its stake in ten special purpose vehicles held through its wholly-owned subsidiary, DBL Renewable Private Ltd...