India’s economy grew 7.8% year-on-year in the April-June quarter of FY27, beating market expectations and signalling continued resilience despite global economic and geopolitical headwinds, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
Real GDP at constant prices was estimated at ₹81.36 lakh crore in Q1 FY27, compared with ₹75.46 lakh crore in the corresponding quarter a year earlier. Nominal GDP rose 10.3% to ₹88.27 lakh crore.
The growth was supported by strong manufacturing, investment and services activity. Manufacturing expanded 9.2%, while the financial, real estate, IT and professional services segment grew 12.1%. Real gross value added (GVA) increased 8.2% during the quarter.
The Q1 growth rate was higher than the 7.1% forecast in a Reuters poll and the Reserve Bank of India’s 7% estimate. However, it moderated from the revised 8.6% growth recorded in Q4 FY26.
The strong performance came despite elevated energy prices, supply-chain disruptions and global uncertainty linked to the West Asia conflict. Robust domestic demand, government capital expenditure and investment helped offset some of these external pressures.
The latest figures reinforce expectations that India will remain among the world’s fastest-growing major economies, although higher oil prices and geopolitical risks could pose challenges to growth and inflation in the coming quarters.