Prime Minister Narendra Modi has welcomed India’s stronger-than-expected economic performance after official data showed real GDP growth of 7.8% in the April-June quarter of 2026-27, describing the performance as a reflection of the collective strength and resilience of the country’s people.
The latest growth figure exceeded the Reserve Bank of India’s earlier estimate of 7% and market expectations of around 7.1%. The expansion came despite global economic uncertainties, oil price pressures and supply-chain disruptions.
PM Modi calls 7.8% growth a ‘herculean feat’
Reacting to the GDP data, Modi said the 7.8% growth recorded in the first quarter was an achievement made possible by the collective strength of Indians.
In a post on social media, the Prime Minister said the economy had maintained its momentum despite oil price shocks, supply-chain issues and wider global uncertainties. He also described the result as evidence of India's resilience.
Modi later used the phrase “doomsayers were doomed and India bloomed” while highlighting the latest economic numbers and taking aim at those who had projected a more pessimistic picture of the Indian economy.
GDP growth beats expectations
India’s real GDP expanded 7.8% year-on-year during the first quarter of FY2026-27. The performance was stronger than both the RBI’s previous projection and market expectations.
However, the quarterly growth rate was lower than the 8.6% recorded in the previous quarter, meaning the latest figure represents a moderation from the immediately preceding quarter even as the economy continued to expand at a strong pace.
The data has nevertheless strengthened expectations that India’s economic momentum remains relatively robust despite challenging international conditions.
Manufacturing and services support expansion
Manufacturing was among the key contributors to the latest growth numbers, expanding by 9.2% during the quarter. Financial and related services also recorded strong growth, with the financial, real estate and professional services segment expanding by 12.1%, according to reports based on the latest GDP data.
Gross value added, another important measure of economic activity, increased by 8.2% during the quarter.
Strong domestic consumption and investment also supported economic activity. Reuters reported that private investment rose sharply during the quarter, while consumer spending received support from income and tax-related measures.
PM’s remarks trigger political debate
The GDP numbers have also become part of a wider political debate over the state of the Indian economy.
While the government has highlighted the latest growth figures as evidence of economic resilience, Opposition criticism has focused on issues including employment, wages and whether strong headline GDP growth is translating into broader economic gains. Current political reporting shows the data has already triggered a fresh exchange between the ruling side and the Opposition.
Modi, however, used the occasion to push back against what he described as pessimistic narratives surrounding India's economic performance.
Global risks remain
Despite the strong quarterly growth, economists and financial analysts have pointed to several risks that could affect the outlook.
Higher energy prices, global trade disruptions, currency movements and geopolitical tensions remain concerns for the Indian economy. India's dependence on imported crude oil makes changes in international energy prices particularly important for inflation and economic activity.
The latest GDP figures therefore provide a strong start to FY2026-27, but sustaining the pace of expansion will depend on domestic demand, private investment, manufacturing activity and the wider global economic environment.
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