India’s GDP grew 7.8% in Q1FY26, beating RBI projections.
Agriculture rose 3.7% while manufacturing recorded 7.7% growth.
Services sector surged 9.3%, driving real GVA growth at 7.6%.
Nominal GDP rose 8.8% to ₹86.05 trillion, NSO data showed.
India’s GDP grew more than expected to a five quarter high of 7.8 percent in Q1FY26, as compared to 7.4 percent in the previous quarter as services growth lifted performance and agricultural sector continued to perform well, a press noted released by the National Statistics Office (NSO) said on Friday.
According to the data, the agriculture sector recorded a 3.7% growth, up from 1.5% in the April-June period of 2024-25. On the other hand, the manufacturing sector growth marginally increased to 7.7% in the first quarter of FY26, as compared to 7.6% in the year-ago period.
Additionally, mining and quarrying (-3.1%) and electricity, gas, water supply and other utility services sector (0.5%) has witnessed moderated real growth rate during Q1 of FY 2025-26. Other than that, the tertiary sector (9.3%) has recorded substantial growth rate at constant Prices in Q1 of FY India’s economy has maintained a resilient growth trajectory, with real GDP increasing by 7.8% in Q1 FY 2025–26. In nominal terms, GDP grew by 8.8% highlighting India’s steady pace towards Viksit Bharat@2047, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.
India’s economy has maintained a resilient growth trajectory, with real GDP increasing by 7.8% in Q1 FY 2025–26. In nominal terms, GDP grew by 8.8% highlighting India’s steady pace towards Viksit Bharat@2047, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.
2025-26, over the growth rate of 6.8% in Q1 of FY 2024-25.
Hemant Jain, President at PHDCCI said in a press statement, "India’s economy has maintained a resilient growth trajectory, with real GDP increasing by 7.8% in Q1 FY 2025–26. In nominal terms, GDP grew by 8.8% highlighting India’s steady pace towards Viksit Bharat@2047."
Going forward, the government's continuous focus on enhancing ease of doing business, strengthening supply chains and structural reforms are expected to propel India’s growth momentum in the coming times, he further said.
Earlier this month, the Reserve Bank of India had projected real GDP growth for 2025-26 at 6.5%, with Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6%, and Q4 at 6.3%. In its recent monetary policy committee (MPC) meeting, RBI had retained its growth forecast for both the first quarter and the full financial year at 6.5 per cent.
The MSO statement noted that the real GDP or GDP at constant prices, in Q1 of FY 2025-26 is estimated at Rs 47.89 lakh crore, against Rs 44.42 lakh crore in Q1 of FY 2024-25.
On the other hand, nominal GDP rose 8.8 per cent to ₹86.05 trillion during the June quarter. Real Gross Value Added (GVA) at constant prices, which measures the value of goods and services produced, increased 7.6 per cent to ₹44.64 trillion, while nominal GVA expanded 8.8 per cent to ₹78.25 trillion.
Buoyant growth in the services sector has led the Indian economy registering real GVA growth of 7.6% in Q1 of FY 2025-26, the statement added.
