India’s economy recorded 7.8% year-on-year GDP growth in the April-June quarter of FY 2026-27, surpassing the Reserve Bank of India’s 7% forecast. The growth came despite challenges from the West Asia conflict, elevated energy prices and supply disruptions.
The manufacturing sector grew 9.2%, while services expanded 10% during the quarter. Gross Value Added also increased 8.2%, reflecting broad-based economic activity.
Investment activity provided another boost, with Gross Fixed Capital Formation rising 11.9% year-on-year. Economists have subsequently raised their growth expectations for the full financial year, although risks from inflation and high crude oil prices remain.
The strong GDP numbers highlight the resilience of the Indian economy, even as policymakers continue to monitor inflation, global uncertainties and energy costs. The RBI currently projects full-year FY27 growth at 6.7%.
