India economy grows 7.8% in April-June, beats expectations

India’s Real GDP has observed a growth rate of 7.8% during the first quarter of financial year 2026-27 against the growth of 6.9% during the same period of the previous financial year. The Indian Economy has sustained Growth Momentum despite Global Headwinds. The nominal GDP has also registered 10.3% growth during the first quarter of the current financial year. The Ministry of Statistics and Programme Implementation on Monday released the quarterly estimates of GDP for the first quarter from April to June of the current financial year.
The Ministry informed that the Real Gross Value Added (GVA) in the first quarter of the current financial year has been assessed to grow by 8.2%, while the Nominal GVA has been assessed to grow by 11.5%. Furthermore, the tertiary sector has boosted the performance of the economy by registering growth of 10% at Constant prices, mainly driven by the Financial, Real Estate, IT and Professional Services sector, which has observed 12.1% growth. Meanwhile, the secondary sector has registered a growth of 8.6% at Constant prices. The Ministry said that the primary sector has observed a 2.9% growth rate at Constant prices, mainly contributed by the performance of the ‘Agriculture and Allied’ sector, which registered 3.6% growth during the first quarter of the current financial year.
Stronger growth could complicate the outlook for interest rates. The RBI kept its benchmark rate unchanged at 5.25% in August, though policymakers have signaled that a hike may be needed later this year if inflationary pressures build.MoSPI said the quarterly GDP estimates are compiled using a benchmark-indicator methodology, with relevant indicators used to extrapolate estimates for the previous financial year.

(Business Correspondent)