India's Q1 GDP growth accelerates to 7.8%, beats RBI forecast

India's economy grew 7.8% in the April-June quarter of 2026-27, according to the latest GDP estimates released by the government on Monday, beating the RBI's 7% projection.

The Ministry of Statistics and Programme Implementation (MoSPI) said that the real GDP, measured at constant 2022-23 prices, is estimated at ₹81.36 lakh crore in the first quarter of the current fiscal, up from ₹75.46 lakh crore in the year-ago period.

Nominal GDP at current prices grew 10.3% to ₹88.27 lakh crore in Q1 FY27 from ₹80 lakh crore a year earlier.

"Indian economy has sustained growth momentum despite global headwinds," the ministry said.

Prime Minister Narendra Modi said that India’s GDP growth of 7.8% during April-June quarter is a herculean feat.

"The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties," Modi posted on X. "Doomsayers were doomed and India bloomed…yet again!"

Finance Minister Nirmala Sitharaman said the reforms undertaken by the NDA government, together with an agile management of the economy, are bearing results.

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

The central bank had projected growth at 7% for the first quarter, followed by 6.4% in Q2, 6.5% in Q3 and 6.8% in Q4.

Economists polled by Reuters had, however, expected the economy to expand 7.1% in the April-June quarter, with subdued private investment seen limiting growth.

The latest data suggest that domestic demand continued to provide a cushion to the economy amid persistent global uncertainty in the wake of West Asia conflict.

Last year's cuts in Goods and Services Tax rates and reductions in income tax were also expected to support household disposable income and consumption demand.

The Q1 estimates are part of the new GDP series with 2022-23 as the base year, introduced by the ministry in February this year.

The ministry said the estimates could undergo revisions as improved data coverage and updated information from source agencies become available.

The next quarterly GDP estimates, covering July-September 2026, are scheduled to be released on November 30.