India's Gross Domestic Product (GDP) growth surged to 7.8% in April-June quarter (first quarter) of current fiscal year 2026-27 (Q1FY27), from 6.9% in Q1FY26. The Indian economy has sustained growth momentum despite global headwinds. The growth rate is well above the Reserve Bank of India’s 7.0% projection for the quarter ended June. The Q1 growth expansion was led by the tertiary and secondary sectors. Tertiary sector growth jumped to 10% in Q1FY27 from 8.0% in Q1FY26, while secondary sector growth rose 8.6% in the quarter under review from 6.1% in the corresponding quarter of previous year. Secondary Sector covers manufacturing, electricity, gas, water supply & other utility services and construction. Tertiary Sector includes trade, hotels, transport, communication and services related to broadcasting, storage; financial, real estate, IT, & professional services, ownership of dwelling and public administration, defence & other services.
As per the data, real GDP or GDP at Constant Prices in Q1 of FY 2026-27 is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in Q1 of FY 2025-26, showing a growth rate of 7.8%. Nominal GDP or GDP at Current Prices in Q1 of FY 2026-27 is estimated at Rs 88.27 lakh crore, against Rs 80.00 lakh crore in Q1 of FY 2025-26, showing a growth rate of 10.3%. Besides, real GVA in Q1 of FY 2026-27 is estimated at Rs 73.82 lakh crore, against Rs 68.21 lakh crore in Q1 of FY 2025-26, showing a growth rate of 8.2%. Nominal GVA in Q1 of FY 2026-27 is estimated at Rs 80.53 lakh crore, against Rs 72.24 lakh crore in Q1 of FY 2025-26, showing a growth rate of 11.5%.
Sector wise, the agriculture, livestock, forestry and fishing sector recorded a 3.6% growth in April-June quarter of FY27, down from 4.4% in the April-June quarter of FY26. Manufacturing sector growth jumped to 9.2% in the first quarter of FY27 compared to 8.3% recorded in the year-ago period. Further, Mining & quarrying recorded contraction of 2.4% in Q1FY27 from a growth of 12.4% in Q1FY26. Meanwhile, electricity, gas, water supply and other utility services sector; and construction recorded growth of 8.9%, and 7.7%, respectively, in Q1FY27. Trade, hotel, transport, communication and services sector growth fell to 8.5% in Q1FY27 from 9.8% in Q1FY26. Financial, Real Estate, Ownership of dwelling, IT & Professional Services sector growth surged to 12.1% in Q1FY27 from 8.8% in Q1FY26. Moreover, growth in Public Admiration, Defence & other services growth stood at 7.5% in Q1FY27 over 4.6% in Q1FY26.
