New Delhi: India’s real Gross Domestic Product (GDP) grew 7.8% year-on-year in the first quarter (April-June) of financial year 2026-27, according to the latest quarterly estimates released by the Ministry of Statistics and Programme Implementation (MoSPI).
Real GDP at constant prices rose to ₹81.36 lakh crore in Q1 FY27, compared with ₹75.46 lakh crore in the corresponding quarter of 2025-26.
Nominal GDP, measured at current prices, grew 10.3%, reaching ₹88.27 lakh crore during the quarter, compared with ₹80 lakh crore a year earlier.
The latest figures indicate that the Indian economy sustained its growth momentum despite continuing global economic headwinds.
Real GVA Records 8.2% Growth
Gross Value Added (GVA) also recorded strong growth during the quarter.
- Real GVA: ₹73.82 lakh crore
- Growth in real GVA: 8.2%
- Nominal GVA: ₹80.53 lakh crore
- Growth in nominal GVA: 11.5%
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The figures reflect continued activity across major segments of the economy.
Manufacturing and Services Support Economic Activity
The quarterly estimates incorporate the new GDP series with 2022-23 as the base year, released by MoSPI earlier this year.
The latest estimates use indicators covering agriculture, manufacturing, infrastructure, transport, financial services, trade and other sectors.
Among the indicators recorded during Q1 FY27:
- IIP – Electrical equipment: grew 27%
- IIP – Other transport equipment: grew 19.5%
- IIP – Capital goods: grew 15.2%
- IIP – Computer, electronic and optical products: grew 12.4%
- IIP – Machinery and equipment: grew 9.1%
- Cement production: grew 8.9%
- Finished steel consumption: grew 8.3%
These indicators point to continued activity in manufacturing, construction and capital-intensive sectors.
Vehicle Sales and Trade Activity Show Strength
Several transport and trade indicators also recorded significant growth during the quarter.
Commercial vehicle sales increased 18.3%, while three-wheeler sales rose 29.7%.
Goods transport vehicle registrations grew 20.1%, while passenger transport vehicle registrations increased 13.9%.
External trade also recorded strong year-on-year growth:
- Exports of goods and services: 25.8%
- Imports of goods and services: 30.5%
- Exports of transport goods: 52.2%
- Exports of machinery and equipment: 31.9%
- Imports of machinery and equipment: 51.5%
Agriculture and Foodgrain Production Remain Important
Total foodgrain production indicators recorded 4.8% growth in Q1 FY27.
Rice production-related indicators grew 6.2%, while wheat recorded 0.5% growth.
The agriculture, forestry and fishing sector also saw its Producer Price Index rise by 4.98% during the quarter.
Electricity Generation and Infrastructure Activity Improve
Electricity-related industrial activity recorded a sharp improvement, with the IIP for electricity growing 9.3% in Q1 FY27, compared with a contraction of 1.5% in the corresponding period of 2025-26.
Infrastructure and construction goods output grew 7.2%, while cement production increased 8.9%.
However, some indicators remained under pressure. The IIP for mining and quarrying declined 1.2%, while fuel minerals fell 4.5%.
New GDP Series Uses Updated Data and Methodology
The latest estimates form part of MoSPI’s new series of National Accounts Statistics, which uses 2022-23 as the base year.
The new series incorporates updated administrative data and indicators, including:
- Index of Industrial Production
- GST data
- Producer Price Index
- Railway traffic data
- Port cargo data
- Air passenger and cargo statistics
- Banking and insurance data
- Vehicle registrations
- Central and state government financial data
MoSPI has also adopted a Double Deflation approach for estimating manufacturing GVA. Under this method, output and intermediate consumption are separately deflated using relevant Producer Price Indices.
GDP Estimates Subject to Future Revisions
MoSPI said the estimates may undergo revisions as improved data coverage and revised input data become available from source agencies.
The next quarterly GDP release, covering Q2 FY27 (July-September 2026), is scheduled for November 30, 2026.
The Q1 figures, therefore, provide an early snapshot of economic activity in FY27 while remaining subject to subsequent revisions under the official release calendar.
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