India's economy grows 7.8% in April-June
Strong investment and manufacturing activity drove quarterly growth.
India's economy grew 7.8% year-on-year in the April-June quarter of 2026, beating market expectations and the Reserve Bank of India's 7% forecast, government data showed today (31 August).
Growth in the first quarter of the 2026-27 financial year, however, moderated from a revised 8.6% in the previous quarter. Strong investment and manufacturing activity helped offset weakness in the mining sector.
The latest figures were released by India's Ministry of Statistics and Programme Implementation (MoSPI).
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Gross value added (GVA), which excludes indirect taxes and subsidies, rose 8.2% during the quarter. Manufacturing grew 9.2%, while financial services expanded 12.1%, supported by strong bank credit growth.
Investment increased nearly 12%, while private consumption grew 7.1%.
The data underline the resilience of India's domestic economy despite global economic uncertainty, high energy prices and geopolitical tensions linked to the conflict in West Asia.
The pace of expansion keeps India among the world's fastest-growing major economies. Analysts have also raised their full-year growth forecasts to around 7% amid stronger investment, easing inflation and resilient domestic demand.
Prime Minister Narendra Modi described the 7.8% growth in the first quarter as a "herculean feat".
In posts on X, Modi said the performance reflected the "collective strength and resilience" of the Indian people despite oil price shocks, supply chain disruptions and global uncertainties.
In another post, he wrote: "Doomsayers were doomed and India bloomed…yet again!"
