India's Q1 GDP Growth 2026: GDP Grows 7.8% In Q1 FY27, Beats RBI's 7% Estimate

The Ministry of Statistics and Programme Implementation (MoSPI) on August 31 released the GDP data for the Q1 FY27 according to which India's real Gross Domestic Product (GDP) grew 7.8% in the April-June quarter of FY 2026-27, comfortably beating the Reserve Bank of India's earlier projection of 7% for the quarter.

The data shows the economy has been on the path of growth even as global headwinds, including rising crude oil prices due to the ongoing West Asia conflict, impacted throughout the quarter.

Quarterly GDP Estimates and Growth Rates

As per data by Ministry of Statistics & Programme Implementation, the Real GDP at constant prices for the base year 2022-23 is estimated at Rs 81.36 lakh crore for Q1 FY27, up by 6.9% from Rs 75.46 lakh crore in the same quarter of FY26.

On the nominal side, GDP at current prices came in at Rs 88.27 lakh crore against Rs 80 lakh crore a year earlier, a growth rate of 10.3%, sharply higher than the 8.1% nominal growth clocked in the year-ago quarter.

GDP Beats Expectations

Ahead of the release, most estimates clustered around 7-7.2%, with ICRA projecting a moderation to 7% from the 7.8% pace seen in Q4 FY26.
The stronger-than-expected numbers therefore is a positive surprise, particularly given that oil refining companies took a hit during the quarter because of the conflict in West Asia,which was flagged by many economists.

Gross Value Added (GVA), which strips out the effect of taxes and subsidies to measure the actual value generated across sectors, also posted a strong showing. Real GVA expanded 8.2% to Rs 73.82 lakh crore, while nominal GVA grew 11.5% to Rs 80.53 lakh crore.

Services Sector Lead

The tertiary, or services, sector was the biggest driver of the headline number, registering 10.0% growth at constant prices. Within services, the Financial, Real Estate, IT and Professional Services category led the charge with 12.1% growth.

The secondary sector which comprises manufacturing, utilities and construction, grew by 8.6%. The primary sector, which is registered by agriculture and allied activities, grew a comparatively modest 2.9%, still an improvement