The Indian economy continues its rapid pace of growth. The growth rate for the first quarter (April-June) of the 2026-27 fiscal year stood at 7.8 percent. This is 0.9 percentage points higher than the 6.9 percent growth rate recorded during the same period last year. This information was released by the Ministry of Statistics and Programme Implementation on Monday.
According to government data, the nominal GDP growth rate for the first quarter of the 2026-27 fiscal year was 10.3 percent, compared to 8.1 percent in the first quarter of the 2025-26 fiscal year. Real Gross Value Added (GVA) grew at a rate of 8.2 percent in the first quarter of the 2026-27 fiscal year, while it stood at 11.5 percent in nominal terms.
The tertiary sector drove growth in the first quarter of the current fiscal year, recording a growth rate of 10 percent. Within this sector, ‘finance, real estate, IT, and professional services’ led the momentum with a growth rate of 12.1 percent.
The secondary sector grew at a rate of 8.6 percent (at constant prices), while the primary sector grew at 2.9 percent. During this period, the growth rate for agriculture and allied segments was 3.6 percent. The growth rate of Gross Fixed Capital Formation (GFCF) stood at 11.9 percent in the first quarter of the 2026-27 fiscal year, up from 5.8 percent in the first quarter of the 2025-26 fiscal year.
Meanwhile, Private Final Consumption Expenditure (PFCE) rose by 7.1 percent at constant prices during this period, indicating a rapid increase in private spending across the country. Earlier, while announcing the Monetary Policy Committee (MPC) decisions in August, RBI Governor Sanjay Malhotra had projected a GDP growth rate of 7 percent for the first quarter of the 2026-27 fiscal year.
He noted that the supply-side pressure resulting from the ongoing conflict in West Asia since June 2026 had eased somewhat. It was also stated that energy price volatility has increased and uncertainty regarding supply chains has re-emerged due to the renewed escalation of the conflict since the first week of July.
