Prime Minister Narendra Modi has termed India's 7.8% economic growth in the April-June quarter of 2026-27 a 'herculean feat', calling it a matter of national joy. According to the latest GDP estimates released by the Ministry of Statistics and Programme Implementation on Monday, real GDP at constant 2022-23 prices stood at ₹81.36 lakh crore in Q1 FY27, compared with ₹75.46 lakh crore in the year-ago period. This growth rate beat the Reserve Bank of India's 7% projection, demonstrating the country's resilience despite global challenges including oil price shocks, supply chain disruptions and global uncertainties triggered by the US-Iran war. Modi emphasized that 'Doomsayers were doomed and India bloomed...yet again!' as the collective strength of the people ensured such growth despite the West Asia war and oil price shocks. The Q1 growth was slower than the 8.6% expansion recorded in the previous quarter but higher than the 6.9% growth recorded in the April-June quarter of 2025-26. The stronger-than-expected expansion suggests that domestic economic activity has remained resilient despite concerns over higher energy prices, inflationary pressures and weaker global demand.
The latest data from the National Statistics Office (NSO) reveals comprehensive sectoral growth patterns across India's economy. India's nominal GDP grew 10.3% to ₹88.27 lakh crore in the April-June quarter, up from ₹80.00 lakh crore in the same period last year. The services sector emerged as the fastest-growing at 10%, significantly improving from 8% growth in the previous year. Financial, real estate and professional services led with 12.1% growth, while trade, hotels, transport, communication and broadcasting services grew 8.5%. Public administration, defence and other services surged 7.5%, and manufacturing witnessed a 9.2% surge. Construction gave a solid boost to overall economic activity, expanding 7.7% against 5.2% last fiscal, while the electricity sector saw a dramatic turnaround, jumping to 8.9% growth after shrinking 1.8% in the same period last year. However, some key primary sectors saw moderation during the first quarter. Agricultural growth slowed to 3.6% YoY in Q1 FY27 from 4.4% a year earlier, while the mining sector registered a sharp drag, shrinking 2.4% compared to a stellar 12.4% growth in the corresponding period last fiscal. The Gross Value Added (GVA) clocked 8.2% growth with real GVA surging to ₹73.82 lakh crore against ₹68.21 lakh crore in Q1 FY26, while nominal GVA rose 11.5% to ₹80.53 lakh crore. On the expenditure side, gross fixed capital formation (GFCF) grew 11.9% in Q1 2026-27, sharply up from 5.8% growth in the year-ago quarter, indicating strong investment momentum. The investment data shows fixed capital formation rose 11.9% in real terms, roughly double last year's pace, with its share of nominal GDP also rising to 34.3%.
Modi noted that the world was facing conflicts and crises, supply chains had been severely disrupted and stability had remained elusive since the COVID-19 pandemic. However, he emphasized that India continues to progress rapidly despite such challenges. Union Finance Minister Nirmala Sitharaman also highlighted the government's achievements, stating that the credit for this strong performance goes to the people of India and their hard work. She noted that reforms undertaken by the NDA government, together with an agile management of the economy, are bearing results. Chief Economic Advisor V Anantha Nageswaran said the resilience in the quarterly data is well backed by high frequency indicators. He noted that the near term, the domestic economic momentum is very strong, but globally, we are continuing to see uncertainties. He flagged concerns with respect to the level of interest rates and potential disruptions on energy commodity supplies, adding that there are multiple issues still in the air as far as global affairs are concerned. Nageswaran emphasized that the domestic momentum and export performance have both combined to deliver another quarter of very strong growth, vindicating the beneficial effects of macroeconomic structural reforms that have been implemented over the last 12 years.
Modi urged citizens to embrace the mantra of 'Swadeshi' and 'Vocal for Local', calling for greater preference for domestic consumption and activities. In a video message posted on social media, he specifically appealed to people to avoid traveling abroad merely for leisure or hosting weddings in foreign lands, instead advocating for the 'Weddings in India' mantra. The prime minister also called for people to refrain from buying gold unless absolutely necessary, as part of the broader push for domestic economic activities. As reported by The Times of India, Modi linked these appeals to his broader push for Swadeshi and self-reliance, saying these efforts would help sustain India's growth and create opportunities for its youth. This initiative reflects the collective strength and resilience of the Indian people, as Modi emphasized. The government's focus on 'Swadeshi' aligns with the broader strategy to enhance domestic production and consumption while reducing dependence on imports.
Modi emphasized that greater emphasis on domestic production, consumption and self-reliance would help India achieve the vision of 'Viksit Bharat' by 2047. In his video message, he stated that the more India emphasizes 'Swadeshi' and self-reliance, the more confident he is that the country will achieve this ambitious goal. As reported by The Times of India, he said 'We have to maintain the speed of our growth. We have to grow. And for that we must become self-reliant,' adding that the dreams of India's youth would require sustained effort. He noted that there had been little stability globally since the COVID-19 pandemic in 2020, but India had continued to make progress. Finance Minister Nirmala Sitharaman reinforced this message during a high-level business roundtable in New York, stating that India remains the fastest-growing major economy after recording 7.8% growth in Q1 FY27 despite global disruptions. She highlighted that India has consistently remained committed to the path of fiscal prudence and fiscal discipline over the past several years, with the government demonstrating greater keenness and competitiveness in attracting investments. These efforts are part of the larger national endeavour towards achieving the vision of Viksit Bharat 2047, with the current strong GDP performance serving as evidence of the effectiveness of these strategies.
