India's economic growth remained resilient in the first quarter of FY27, with real GDP growth coming in at 7.8%, ahead of the market estimate of 7.3%. The growth was broadly unchanged from the 7.8% recorded in the previous quarter.
The stronger-than-expected GDP print comes despite concerns over global economic uncertainty, elevated commodity prices and geopolitical risks. Recent economic indicators have pointed to continued resilience in domestic demand and industrial activity.
Real GDP during Q1 of FY26-27 registered growth of 7.8%, while nominal GDP grew 10.3% during the quarter.
Manufacturing emerged as one of the strongest contributors to the Q1 growth momentum, expanding 9.2%. The sector's performance comes amid sustained industrial activity and stronger capital goods production. The power, gas, water supply and other utilities segment grew 8.9%, while construction expanded 7.7% during the quarter.
The trade, hotels, transport, communication and services-related segment recorded growth of 8.5%, pointing to continued strength in consumption and services activity. Financial, real estate and professional services posted the strongest growth among the major sectors, expanding 12.1% in Q1.
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Public administration, defence and other services grew 7.5%. Agriculture growth, meanwhile, stood at 3.6%, while mining contracted 2.4%, making it one of the weaker spots in the Q1 growth data.
Gross Value Added (GVA) growth came in at 8.2% in Q1, significantly ahead of the 7.3% market estimate and higher than the 7.9% recorded in the previous quarter. The stronger GVA growth indicates that underlying economic activity remained robust, particularly across manufacturing and services.
The 7.8% GDP growth was also in line with the previous quarter's revised 7.8% expansion, suggesting that the economy has maintained its growth momentum rather than experiencing a sequential slowdown.
The Ministry of Statistics and Programme Implementation had released the new series of annual and quarterly GDP estimates with 2022-23 as the base year on February 27, 2026. This was followed by the provisional GDP estimates for FY26 released on June 5, 2026.
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