‘Doomsayers doomed’: India’s GDP grows 7.8% in first quarter, domestic economy gives boost amid global tensions

Defying the uncertainty in global trade, high energy prices and geopolitical tensions, India’s Gross Domestic Product (GDP) growth rose to 7.8 per cent in the first quarter of financial year 2027 (FY27), beating all estimates. Prime Minister Narendra Modi hailed the growth as “exemplary”.

As per government data released on Monday, the GDP growth in the April-June quarter was higher than 7 per cent estimated by the Reserve Bank of India (RBI), showing resilience despite a challenging global environment.

The GDP growth in the April-June quarter was lower than the preceding one, which came in at 8.6 per cent, but was higher than the 6.9 per cent of the same quarter last financial year.

The stronger-than-expected growth is even more significant as it comes despite various pressures like geopolitical tensions, elevated energy prices and uncertainty over global trade.

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High domestic demand a key support for economic activity

High domestic demand remained a key support for economic activity, while government capital expenditure, manufacturing, construction and exports also contributed to growth.

The June-quarter performance follows a 7.8% growth in the January-March quarter of FY26.

Manufacturing and construction were among the areas supporting the economy during the quarter. Stronger industrial activity towards the end of the quarter also provided support to overall growth.

The figures highlight the importance of India’s domestic economy amid global tensions, tariff wars and geopolitical realignments, as a relatively large domestic consumer market helped cushion the economy from the weakness in global demand and trade.

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The data from the Ministry of Statistics and Programme Implementation (MoSPI) reveals that sectors including financial, real estate, IT and professional services boosted India’s growth in the first quarter of FY27.

‘Doomsayers doomed, India bloomed’

Hailing the GDP growth, Prime Minister Narendra Modi said, “India’s exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat.”

“Doomsayers were doomed and India bloomed...yet again!”, he further wrote in a post on X.

Leader of Opposition Rahul Gandhi had claimed in June that a massive “economic tsunami” is coming.

Addressing an event at the Congress headquarters, Rahul Gandhi said, “A massive economic tsunami is coming, prices are rising and this is just the beginning. India will witness an economic crisis you have never seen before. This is happening, and no one can stop this.”

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Real GDP, or GDP at Constant Prices, in Q1 was estimated at Rs 81.36 lakh crore, as against Rs 75.46 lakh crore in the same quarter last year, bringing the growth rate to 7.8 per cent.

Nominal GDP, which represents the value of goods and services without accounting for inflation, witnessed a growth of 10.3 per cent in Q1 FY27, against a growth of 8.1 per cent during the same period in the last financial year.

Union Finance Minister Nirmala Sitharaman credited India’s growth to the “hard work” of Indians.

“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,” she wrote in a post on X.

She further said that the NDA government was “committed to further expanding economic opportunities for all our citizens.”