GDP growth comes in at 7.8% in Q1, slower than last quarter but quicker than last year
India's GDP grew by 7.8% in the first quarter of FY27, showing resilience despite global economic uncertainties. While the manufacturing and services sectors performed well, agriculture and mining lagged behind.
Why it matters
GDP growth figures are primary indicators of a nation's economic health and influence investor sentiment and government policy decisions.
The growth in India’s Gross Domestic Product (GDP) stood at 7.8% in the April-June 2026 quarter (Q1 FY27), quicker than the 6.9% recorded in Q1 of last year, but slower than the 8.6% of the January-March 2026 quarter.
The stronger performance in Q1 of this year as compared to last year has been driven by the manufacturing sector as well as some broad services categories such as utilities, financial services, real estate, IT, and public administration and defence.
The primary sector, comprising agriculture and mining, lagged significantly.
“India’s exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat,” Prime Minister Narendra Modi said in a post on X. “The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties.”
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