In times of uncertainty around the world, the Indian economy has again proved its resilience. India's GDP growth in the first quarter of the fiscal year 2026-27, that is from April to June, is 7.8%. Even when the tensions are rising in the Middle East region, there are delays in monsoon and uncertainties over tariffs, domestic demand sustained the momentum of the economy. The data made public by the government on Monday exceeded market expectations about the economy. Earlier economists had predicted that the GDP growth in the first quarter would be at 7.4%.

As per the Ministry of Statistics and Program Implementation, the Real GDP or GDP at constant prices is ₹81.36 lakh crore in the April-June quarter as against ₹75.46 lakh crore in the same quarter of last year. Therefore, the economy grew at 7.8 percent year-on-year.

Nevertheless, the growth rate is lower than that of the previous quarter. In the January-March quarter, the growth rate was 8.6 percent, while it was earlier projected at 7.8 percent. Also, the growth rate in the April-June quarter of the fiscal year 2025-26 was 6.8 percent. While the pace has slowed somewhat, the picture remains strong.

In its monetary policy meeting held in August, the Reserve Bank of India had estimated GDP growth for the June quarter at 7 percent. Previously, the RBI had estimated 6.6 percent. Now, with the actual figure coming in at 7.8 percent, the economy has surpassed the central bank's estimate. The RBI also raised its GDP growth forecast for the full fiscal year 2026-27 from 6.6 percent to 6.7 percent.

Not only real GDP, but nominal GDP based on current prices also saw a significant increase. Nominal GDP grew by 10.3 percent in the first quarter of fiscal year 2026-27, compared to 8.1 percent in the same period a year ago. This data indicates that as economic activity increases, prices are also impacting the value of total economic output.

In its July report, the Finance Ministry stated that despite the challenging global environment, the Indian economy maintained its momentum in the first quarter. Domestic demand played a major role in this. However, some high-frequency indicators showed a slight slowdown. Data such as e-way bills and manufacturing PMI showed a slight slowdown. On the other hand, the services sector performed better and received support from domestic and foreign demand. This is why the economy remained underailed despite external challenges.

In the coming months, the main focus will be on inflation, crude oil prices, and the weather. The Asian Development Bank (ADB) has lowered its GDP growth forecast for India for the current fiscal year from 6.9 percent to 6.6 percent. The World Bank has also projected India's economic growth at 6.6 percent. This suggests that despite the strong first quarter data, the road ahead is not entirely smooth.

In times of uncertainty around the world, the Indian economy has again proved its resilience. India's GDP growth in the first quarter of the fiscal year 2026-27, that is from April to June, is 7.8%. Even when the tensions are rising in the Middle East region, there are delays in monsoon and uncertainties over tariffs, domestic demand sustained the momentum of the economy. The data made public by the government on Monday exceeded market expectations about the economy. Earlier economists had predicted that the GDP growth in the first quarter would be at 7.4%.

As per the Ministry of Statistics and Program Implementation, the Real GDP or GDP at constant prices is ₹81.36 lakh crore in the April-June quarter as against ₹75.46 lakh crore in the same quarter of last year. Therefore, the economy grew at 7.8 percent year-on-year.

Nevertheless, the growth rate is lower than that of the previous quarter. In the January-March quarter, the growth rate was 8.6 percent, while it was earlier projected at 7.8 percent. Also, the growth rate in the April-June quarter of the fiscal year 2025-26 was 6.8 percent. While the pace has slowed somewhat, the picture remains strong.

In its monetary policy meeting held in August, the Reserve Bank of India had estimated GDP growth for the June quarter at 7 percent. Previously, the RBI had estimated 6.6 percent. Now, with the actual figure coming in at 7.8 percent, the economy has surpassed the central bank's estimate. The RBI also raised its GDP growth forecast for the full fiscal year 2026-27 from 6.6 percent to 6.7 percent.

Not only real GDP, but nominal GDP based on current prices also saw a significant increase. Nominal GDP grew by 10.3 percent in the first quarter of fiscal year 2026-27, compared to 8.1 percent in the same period a year ago. This data indicates that as economic activity increases, prices are also impacting the value of total economic output.

In its July report, the Finance Ministry stated that despite the challenging global environment, the Indian economy maintained its momentum in the first quarter. Domestic demand played a major role in this. However, some high-frequency indicators showed a slight slowdown. Data such as e-way bills and manufacturing PMI showed a slight slowdown. On the other hand, the services sector performed better and received support from domestic and foreign demand. This is why the economy remained underailed despite external challenges.

In the coming months, the main focus will be on inflation, crude oil prices, and the weather. The Asian Development Bank (ADB) has lowered its GDP growth forecast for India for the current fiscal year from 6.9 percent to 6.6 percent. The World Bank has also projected India's economic growth at 6.6 percent. This suggests that despite the strong first quarter data, the road ahead is not entirely smooth.