India GDP growth defies US-Iran war impact, economy grows at robust 7.8% in Q1
India's economy grew by 7.8% in the first quarter of the 2026-27 fiscal year, exceeding initial projections despite global headwinds and the ongoing US-Iran conflict. While growth slowed slightly from the previous quarter, the performance remains robust compared to earlier central bank estimates.
Why it matters
India's economic resilience suggests it is successfully navigating geopolitical instability and supply chain disruptions that are impacting other global markets.
India’s Gross Domestic Product (GDP) growth for the first quarter of FY 2026-27 beat estimates at 7.8%. This is the first full quarter of the US-Iran war which was expected to adversely impact GDP growth. However, real GDP growth did slow by 80 basis points from 8.6% in the fourth quarter of FY 2025-26.The Indian economy expanded 7.8% in the April-June quarter of the current financial year, compared with 6.9% growth in the same period a year earlier, according to government data released on Monday.The Ministry of Statistics and Programme Implementation (MoSPI) estimated real Gross Domestic Product, or GDP at constant prices, at Rs 81.36 lakh crore in the first quarter of FY27.
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