India's economy expanded 7.8 per cent in the April-June quarter of FY2026-27, sharply exceeding economists' expectations, with strong domestic activity helping growth withstand geopolitical and external pressures.
The latest figures from the Ministry of Statistics and Programme Implementation (MoSPI) placed real gross domestic product (GDP) at constant prices at ₹81.36 lakh crore for the April-June period, up from ₹75.46 lakh crore in the same quarter last year. In nominal terms, GDP expanded 10.3 per cent to ₹88.27 lakh crore, compared with ₹80 lakh crore a year earlier.
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A Reuters survey of 58 economists had projected a 7.1 per cent expansion. The Reserve Bank of India had earlier pencilled in a 7 per cent reading for the quarter.
Economists said the strong showing underscores the underlying resilience of the domestic economy at a time when elevated crude prices, uncertainty over global trade, and financial market turbulence, amplified by the ongoing US-Iran conflict-have clouded the outlook for many emerging markets.
Gross value added (GVA), a key measure of domestic output, also came in stronger. Real GVA at basic prices rose 8.2 per cent to ₹73.82 lakh crore in Q1 FY27, against ₹68.21 lakh crore in the corresponding period last year. Nominal GVA climbed 11.5 per cent to ₹80.53 lakh crore, as per the data.
Ahead of the data release, analysts had pointed to sustained consumer spending, higher government capital outlays, and brisk activity in manufacturing, construction, and exports as the primary drivers of growth.
The latest numbers also mark the first quarterly GDP release under India's revised national accounts framework, which now uses 2022-23 as the base year.
