India's GDP Grows 7.8% in Q1 FY 2026-27 Driven by Manufacturing
India’s GDP grew by 7.8% in Q1 FY27 to ₹81.36 lakh crore, up from 6.9% a year earlier. The growth was fueled by a 9.2% increase in manufacturing and an 11.9% rise in investment demand. Chief Economic Adviser noted the resilience in growth despite global uncertainties.
India’s economy expanded by 7.8% year-on-year during the first quarter of FY27, bringing the gross domestic product (GDP) to ₹81.36 lakh crore. This pace represents an improvement over the revised 6.9% growth recorded in the same quarter of the previous fiscal year. The momentum was supported largely by a 9.2% increase in the manufacturing sector and an 11.9% rise in Gross Fixed Capital Formation (GFCF).
The Chief Economic Adviser, V Anantha Nageswaran, emphasized that this growth reflects a continued resilience in India's economic performance, despite challenges such as disruptions in West Asia and elevated energy prices. Figures released by the Ministry of Statistics and Programme Implementation (MoSPI) indicate broad contributions across several sectors, including a steady performance in agriculture, which grew by 3.6%.
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