India’s real GDP grew by 7.8 percent in the April-June quarter of the 2026-27 fiscal year, beating most private-sector forecasts. Nominal GDP grew by 10.3 percent, while real gross value added rose 8.2 percent. Although lower than the previous quarter’s 8.6 percent expansion, this performance remains among the strongest for major economies this year, despite headwinds from global trade disruptions, the West Asia crisis, and oil-price volatility.
Sector growth varied, with manufacturing accelerating to 9.2 percent and financial, real estate, and IT services surging by 12.1 percent. In contrast, agriculture grew by a more modest 3.6 percent, partly due to a delayed monsoon onset. Investment demand was strong, as gross fixed capital formation jumped to 11.9 percent from 5.8 percent the previous year.
The data will likely influence the Reserve Bank of India’s upcoming monetary policy review, where growth and inflation remain central concerns. Economists are now watching to see if this momentum will continue into the second quarter amid unresolved regional tensions.