India’s GDP grew 7.8% year-over-year in the first quarter of fiscal year 2026-27, comfortably beating the consensus forecast of 7.1-7.3% and cementing the country’s position as the fastest-growing major economy on the planet.
The figures, released by the Ministry of Statistics and Programme Implementation on August 31, showed real GDP reaching ₹81.36 lakh crore, up from ₹75.46 lakh crore in the same quarter a year earlier. Nominal GDP reached ₹88.27 lakh crore, representing a 10.3% increase.
What drove the outperformance
Manufacturing, construction, and utility services did the heavy lifting. Gross Value Added rose 8.2% to ₹73.82 lakh crore.
Government capital expenditure played a meaningful role. The central government deployed 27.8% of its full-year budget estimate for capital spending in Q1 alone, up from 24.5% in the year-ago quarter.
