India's Real GDP Grows 7.8% in Q1 FY27, Beats RBI Estimate
- IBEF
- September 2, 2026
India's real Gross Domestic Product (GDP) grew 7.8% in Q1 FY27, accelerating from 6.9% in the corresponding quarter last year and beating the Reserve Bank of India's earlier estimate of 7%, according to data released by the Ministry of Statistics and Programme Implementation. Real GDP at constant prices stood at Rs. 81.36 lakh crore (US$ 856.60 billion) in Q1 FY27, up from Rs. 75.46 lakh crore (US$ 794.48 billion) a year earlier, while nominal GDP rose 10.3% to Rs. 88.27 lakh crore (US$ 929.35 billion) from Rs. 80 lakh crore (US$ 842.28 billion). Real Gross Value Added (GVA) grew 8.2% to Rs. 73.82 lakh crore (US$ 777.22 billion). The services sector expanded 10%, led by financial, real estate, IT and professional services at 12.1%, while the secondary sector grew 8.6% and manufacturing rose 9.2%, with electrical equipment production up 27% and capital goods production up 15.2%.
On the expenditure side, gross fixed capital formation rose 11.9%, household consumption grew 7.1% and exports increased 12%. Industrial production grew 6.7% in July and 6.3% during April-July, while the Index of Core Industries rose 4.3%. Combined merchandise and services exports stood at Rs. 7.61 lakh crore (US$ 80.14 billion) in July, up 13.31% year-on-year, with cumulative April-July exports at Rs. 30.06 lakh crore (US$ 316.42 billion), up 13.16%. Bank credit to agriculture, industry and services grew 17%, 20% and 22.9% respectively. The government also revised upward real GDP growth estimates for 2023-24, 2024-25 and 2025-26.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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