India’s economy grows 7.8% in Q1 FY27 despite global woes, beats expectations

Mangalore Today News Network

New Delhi, Aug 31, 2026: India’s Q1 GDP Growth: India’s economy grew 7.8 per cent in the first quarter of the financial year 2026-27 (Q1 FY27), beating estimates despite global uncertainties, according to the latest official data released on Monday, August 31, 2026.

“Real GDP or GDP at Constant Prices in Q1 of FY 2026-27 is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in Q1 of FY 2025-26, showing a growth rate of 7.8%," the National Statistics Office said in a statement.

The RBI had projected real GDP growth for Q1 FY27 at 7%. A Moneycontrol poll of 17 economists had put the median estimate at 7.3 per cent, with forecasts ranging from 6.6 per cent to 8 per cent. Reuters‘ poll of 58 economists had a median estimate of 7.1 per cent.

Nominal GDP Accelerates 10.3%

Nominal GDP, which includes the impact of inflation, grew 10.3 per cent to Rs 88.27 lakh crore in Q1 FY27 from Rs 80.00 lakh crore in Q1 FY26, according to the latest official data.

GVA Growth Up 8.2%

Gross value added (GVA), a key measure of economic activity that excludes taxes and subsidies, grew 8.2 per cent in Q1 FY27, against 7 per cent in the corresponding period last year. Real GVA was estimated at Rs 73.82 lakh crore during Q1 FY27 against Rs 68.21 lakh crore a year ago.

Nominal GVA grew even faster, rising 11.5% to Rs 80.53 lakh crore from Rs 72.24 lakh crore a year earlier.

The GVA data provides a clearer picture of which sectors contributed to the economy’s expansion. The economy is broadly divided into three major sectors — primary, secondary and tertiary.

The primary sector covers agriculture, livestock, forestry, fishing and mining. The secondary sector includes manufacturing, electricity, utilities and construction. The tertiary sector covers trade, hotels, transport, communication, financial and real estate services, IT and professional services, and public administration.

Sector-Wise Growth in Q1 FY27

The services sector emerged as the fastest-growing segment of the economy, expanding 10% in Q1 FY27, compared with 8% growth in the corresponding quarter last year.

Within services, financial, real estate and professional services recorded the strongest growth at 12.1%. The trade, hotels, transport, communication and broadcasting-related services segment grew 8.5%, while public administration, defence and other services expanded 7.5%.

On the industrial side, manufacturing grew 9.2%, while construction activity expanded 7.7% during the quarter.

Meanwhile, agriculture, forestry and fishing recorded 3.6% growth, indicating a comparatively slower expansion than the services and industrial segments.

Expenditure, Investments

On the expenditure side, Private Final Consumption Expenditure (PFCE) and Government Final Consumption Expenditure (GFCE) expanded by more than 9.9 per cent and 9.5 per cent, respectively, during the quarter.

On the investment side, Gross Fixed Capital Formation (GFCF) jumped 20.4 per cent during April-June 2026.