India's economy grew 7.8 percent in the first (April-June) quarter of 2026-27, beating expectations and signalling resilience despite concerns that the Iran war and resulting global economic uncertainty could weigh on growth.
The first-quarter growth, however, slowed from the 8.6 per cent expansion recorded in the previous quarter. It was nevertheless significantly higher than the 7 per cent growth forecast by the Reserve Bank of India (RBI) for the quarter.
The latest data also keeps India as the world's fastest-growing major economy, with domestic economic activity holding up despite heightened geopolitical risks, volatile energy markets and concerns over inflation and global demand.
The Q1 growth rate compares with 6.9 per cent in the April-June quarter of 2025-26, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.
Prime Minister Narendra Modi said that achieving the growth was a "herculean feat".
"India's exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat," he wrote in an X post.
He further said India "bloomed", crediting the collective strength of people. "Doomsayers were doomed and India bloomed...yet again!"
Real GDP, measured at constant prices, was estimated at Rs 81.36 lakh crore in the first quarter of FY27, up from Rs 75.46 lakh crore in the corresponding period a year earlier, MoSPI said.
"Indian economy has sustained growth momentum despite global headwinds," the ministry said.
The stronger-than-expected performance provides some relief to policymakers as they seek to sustain growth while managing risks from geopolitical tensions and fluctuations in global commodity prices.
The RBI has projected India's economy to grow 6.7 per cent in the full 2026-27 fiscal year.
Nominal GDP, measured at current prices, was estimated at Rs 88.27 lakh crore in the April-June quarter, compared with Rs 80 lakh crore in the year-ago period, representing a 10.3 per cent growth.
Finance Minister Nirmala Sitharaman on Monday said the reforms undertaken by the NDA government, together with an agile management of the economy, are bearing results, with real GDP growth coming in at 7.8 per cent in the April-June quarter.
India's economic growth in the first quarter is well above the Reserve Bank of India's 7 per cent GDP growth forecast for the quarter.
"The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results," Sitharaman said in a post on X.
She said the Narendra Modi-led government remains committed to further expanding economic opportunities for all citizens.
(With inputs from PTI)