New Delhi: India’s economy grew at a faster-than-expected 7.8 per cent in the April-June quarter, showing resilience in the face of concerns that the war in Iran and resulting global economic uncertainty could weigh on growth.
Gross domestic product (GDP) growth in the first quarter of the 2026-27 fiscal year slowed from a barnstorming 8.6 per cent in the previous quarter, but remained well above expectations when the conflict erupted and disrupted energy markets.
The pace, which keeps India as the world’s fastest-growing major economy, also exceeded the Reserve Bank of India’s forecast of 7 per cent for the quarter, underscoring the strength of domestic economic activity despite heightened geopolitical risks.
The central bank has projected the economy to expand 6.7 per cent in the full 2026-27 fiscal year.
The Q1 growth compares to 6.9 per cent expansion in the year-ago quarter, according to government data released on Monday, August 31.
To offer relief to policymakers
The stronger-than-expected quarterly performance suggests India’s growth momentum has so far held up against external shocks, including the Iran conflict, which had raised concerns over higher energy prices, inflationary pressures and weaker global demand.
The data will offer some relief to policymakers as they balance efforts to sustain growth with risks stemming from geopolitical tensions and volatile commodity markets.
Real Gross Domestic Product, or GDP at constant prices, in the first quarter of FY27 is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in the corresponding quarter of 2025-26, showing a growth rate of 7.8 per cent, the Ministry of Statistics and Programme Implementation (MoSPI) said.
“Indian economy has sustained growth momentum despite global headwinds,” the ministry said.
Nominal GDP, or GDP at current prices, in the April-June quarter of the current fiscal year is estimated at Rs 88.27 lakh crore, against Rs 80 lakh crore in the first quarter of 2025-26, showing a growth rate of 10.3 per cent.
India bloomed, doomsayers doomed: Modi
Prime Minister Narendra Modi on Monday hailed the 7.8 per cent GDP growth in the April-June quarter and took a dig at those questioning the state of the Indian economy, saying “doomsayers were doomed and India bloomed yet again.”
The prime minister said that India’s exemplary GDP growth during Q1 of FY 2026-27 is a “herculean feat”.
“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.
“Doomsayers were doomed and India bloomed…yet again!” Modi wrote on X.
Govt reforms, agile economic management bearing results: Sitharaman
Finance Minister Nirmala Sitharaman said the reforms undertaken by the National Democratic Alliance (NDA) government, together with agile management of the economy, are bearing results.
“The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results,” Sitharaman said in a post on X.
She said the Narendra Modi-led government remains committed to further expanding economic opportunities for all citizens.
Once again, Indian economy trumped global uncertainties: Shah
Union Home Minister Amit Shah said the Indian economy has once again trumped global uncertainties, adding that it stands as a testament to the “visionary” leadership of Prime Minister Narendra Modi.
“Indian economy growing from strength to strength against global odds Under Modi govt. Once again, the Indian economy has trumped global uncertainties and secured a GDP growth of 7.8% in Q1 of FY 2026-27,” he said in a post on ‘X’.
Congress asks, ‘Where are the jobs?’
The Congress said that the 7.8 per cent GDP growth is “not an economic spring” and questioned why, if India has truly bloomed, it is not translating into jobs and prosperity for its people.
“One quarter of 7.8 per cent growth is not an economic spring. If India has truly ‘bloomed’, why do rampant unemployment, leaked exam papers, and a crumbling education system define the ground reality?” Congress’ head of media and publicity department Pawan Khera said in a post on X.
“Why is the republic’s prosperity not translating into the prosperity of its public?” he said.
Khera said, “GDP measures national output – not jobs, not wages, not opportunity. If it measured any of those, the future of India’s youth would not look so bleak.
“Modi can manage his headlines. For India’s youth, the question remains the same as ever: Where are the jobs?”
