India’s Q1 GDP Growth Hits 7.8%, Beats RBI Estimate

Updated : Aug 31, 2026 16:57
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Sidhant Maheshwari

India’s economy expanded at a faster-than-expected pace during the April-June quarter of financial year 2026-27, with real GDP registering growth of 7.8 per cent.

Data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that economic activity remained resilient despite continuing global uncertainties.

The latest growth rate exceeded the Reserve Bank of India’s (RBI) projection of 7 per cent for the first quarter by 0.8 percentage points.

In absolute terms, real GDP for Q1 FY27 stood at an estimated Rs 81.36 lakh crore.

The corresponding figure for the April-June quarter of FY26 was Rs 75.46 lakh crore.

Real GDP accounts for changes in prices and is used to assess the actual expansion in economic output.

The stronger-than-anticipated quarterly performance comes after the RBI raised its full-year growth forecast for FY27 earlier this month.

The central bank revised its annual GDP growth projection to 6.7 per cent, up from its earlier estimate of 6.6 per cent.

Growth was also recorded in nominal GDP, which reflects economic output at prevailing prices without adjusting for inflation.

Nominal GDP rose to an estimated Rs 88.27 lakh crore in Q1 FY27 from Rs 80.00 lakh crore during the same period a year earlier.

That translates into a 10.3 per cent year-on-year increase.

The latest data also pointed to healthy expansion in gross value added (GVA), which tracks the value created across different segments of the economy.

MoSPI said the latest numbers indicate that the economy has been able to retain its growth momentum despite global headwinds.

However, the Q1 figures are not final and could change in subsequent revisions.

According to MoSPI, changes in source data and broader data coverage may affect future estimates.

The ministry said revisions would be carried out according to the established release calendar and should be considered while assessing the current figures.

The next quarterly GDP assessment, covering July-September 2026, will be released on November 30.

The Q1 numbers mark the first official reading of India’s economic performance in FY27 and show that growth was significantly stronger than the RBI had initially anticipated.

Indian Economy

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