New Delhi, September 1: Industry chambers have welcomed India’s real GDP growth of 7.8% for the first quarter of the fiscal year 2026-27. This expansion is attributed to robust domestic demand, a strong industrial sector, increased investment, and a rapidly growing service sector.
Experts highlighted that public capital expenditure, digitalization, service exports, and an improving financial sector balance sheet are crucial supports for the economy.
The real GDP growth rate for the first quarter of 2026-27 stood at 7.8%, compared to 6.9% in the same quarter of the previous fiscal year.
Manoranjan Sharma, Chief Economist at Informerics Ratings, stated that if policy reforms successfully boost private investment and enhance the competitiveness of the manufacturing sector, India could maintain a growth rate exceeding 7% in the medium term.
In the first quarter, real GDP at constant prices is estimated to be ₹81.36 lakh crore, up from ₹75.46 lakh crore in the first quarter of 2025-26.
Rajeev Juneja, President of PHDCCI, noted an 8.9% increase in the cement production index during the first quarter of 2026-27, while the IIP for infrastructure or construction goods rose by 7.2%, and the IIP for electricity saw a 9.3% increase.
Demand indicators showed a 13.9% rise in the registration of passenger transport vehicles, while registrations of goods transport vehicles increased by 20.1%.
In the external sector, exports of goods and services grew by 25.8% year-on-year in the first quarter of 2026-27, with transport goods exports surging by 52.2%.
India’s service sector recorded a 10% growth at constant prices, significantly contributing to the economy’s performance. Key sectors such as finance, real estate, IT, and professional services saw a notable growth of 12.1%.
Madhavi Arora, Chief Economist at MK Global Financial Services, remarked, “The strong GDP growth confirms cyclical momentum in the economy, reflected in high-frequency indicators, including corporate earnings.”
Arora added that despite the crisis in the Middle East, activity levels remain strong, indicating that companies have been able to pass on a significant portion of increased input costs to consumers.
Nirmal K. Minda, President of Assocham, stated, “In addition to strong GDP and manufacturing growth, the tertiary sector’s 10% and construction sector’s 7.7% growth is extremely encouraging. This suggests that robust growth above 7% will continue throughout the fiscal year.”
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