Indian Economy Grows At 7.8% In Q1 FY27, Surpasses RBI Forecast

(MENAFN- AsiaNet News)

India's real gross domestic product (GDP) grew 7.8 per cent in the first quarter (April-June) of the current financial year 2026-27, surpassing the Reserve Bank of India's (RBI) earlier estimate of 7 per cent for the quarter, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The latest figures show that the Indian economy maintained its growth momentum despite global headwinds.

As per the data, Real GDP, which measures economic output after adjusting for price changes, was estimated at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore in the same quarter of FY26. This represents a 7.8 per cent growth over the year-ago period.

The growth was higher than the RBI's estimate announced earlier this month. The central bank had projected real GDP growth at 7 per cent for Q1 FY27 while revising its full-year FY27 growth forecast to 6.7 per cent from 6.6 per cent.

Nominal GDP and GVA Performance

Along with real GDP, nominal GDP, which is measured at current prices without adjusting for inflation, also recorded strong growth during the quarter. Nominal GDP in Q1 FY27 was estimated at Rs 88.27 lakh crore, compared with Rs 80.00 lakh crore in Q1 FY26, registering a growth of 10.3 per cent.

The data also showed strong growth in gross value added (GVA), an indicator that measures the value generated by different sectors of the economy. The stronger-than-expected GDP growth comes against the backdrop of global economic uncertainties and headwinds.

Economic Context and Data Revisions

The Ministry said the Indian economy has sustained its growth momentum despite these challenges. The Q1 GDP estimate is, however, subject to revisions.

MoSPI said improved data coverage and revisions in input data made by source agencies would have a bearing on subsequent revisions of the estimates. It said the estimates are therefore likely to undergo revisions in due course, in line with the release calendar, and users should take this into consideration while interpreting the figures.

The next set of quarterly GDP estimates, covering the July-September quarter (Q2) of FY27, is scheduled to be released on November 30, 2026. The latest numbers provide the first official assessment of economic growth for FY27 and show that real GDP growth in the April-June quarter was 0.8 percentage points higher than the RBI's estimate of 7 per cent for the period.

(ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)

MENAFN31082026007385015968ID1111600782