'Reforms are bearing results': FM Sitharaman as GDP grows 7.8% in Q1 FY27

Finance Minister Nirmala Sitharaman on Monday credited the people of India and their hard work for the economy's strong performance after real GDP grew 7.8% in the first quarter of FY 2026-27.

Real GDP growth in the April-June quarter was higher than the 6.9% recorded in the same quarter last year.

"The credit for this strong performance goes to the people of India and their hard work," Sitharaman said in a post on X. "Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results."

The FM further said that the NDA Government, led by PM Narendra Modi, remained "committed to further expanding economic opportunities for all our citizens."

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Growth Across Sectors

Nominal GDP grew 10.3% in Q1 FY27, compared with 8.1% a year earlier. Real GVA grew 8.2%, while nominal GVA increased 11.5%.

The tertiary sector grew 10% at constant prices. Financial, real estate, IT, and professional services led the expansion, growing 12.1%. The secondary sector grew 8.6%, while the primary sector expanded 2.9%.

Agriculture and allied activities grew 3.6% during the quarter.

On the expenditure side, gross fixed capital formation grew 11.9% at constant prices. That was up from 5.8% in the same quarter last year. Private final consumption expenditure grew 7.1%.

Former NITI Aayog CEO Amitabh Kant said the figures showed the economy's resilience.

"India's economy has once again demonstrated remarkable strength and resilience," Kant said, noting that real GDP growth of 7.8% was ahead of expectations and higher than the 6.9% recorded in Q1 last year.

He said manufacturing grew 9.2% and services 10%, while investment rose to 34.3% of GDP from 31.4% a year earlier.

Kant said the figures "emphatically put to rest fears" that the Iran war shock and heightened global uncertainty would sharply weaken India's growth momentum.

He attributed the performance to strong domestic demand and the economy’s ability to absorb external shocks.

"At a time when the global economy is facing geopolitical turbulence, trade fragmentation, and uncertainty, India continues to stand out as an oasis of stability and growth," Kant said. "India remains the fastest-growing major economy in the world."