India's Economic Expansion Beats Estimates With Robust 7.8 Per Cent GDP Growth In First Quarter Of FY26

India’s economy expanded by 7.8 per cent in the April–June quarter of FY26, outpacing analyst estimates that had forecast growth between 6.5 per cent and 7 per cent GDP growth, as per official data released on Friday (29 August), News18 reported.

The growth is significantly higher compared to 6.5 per cent in the same quarter last year, highlighting sustained economic momentum.

“Real GDP has been estimated to grow by 7.8% in Q1 of FY 2025-26 over the growth rate of 6.5% during Q1 of FY 2024-25," the Ministry of Statistics & Programme Implementation said in a statement.

At constant prices, real GDP stood at Rs 47.89 lakh crore in Q1 FY26, up from Rs 44.42 lakh crore in Q1 FY25, official data showed.

Nominal GDP—which accounts for inflation—rose by 8.8 per cent during the first quarter of FY26.

The ministry noted that services sector strength lifted real GVA growth to 7.6 per cent in Q1 FY26.

According to the National Statistical Office (NSO), real GVA reached Rs 44.64 lakh crore in Q1 FY26, up from Rs 41.47 lakh crore a year earlier, reflecting 7.6 per cent growth.

Nominal GVA increased 8.8 per cent to Rs 78.25 lakh crore in Q1 FY26, compared with Rs 71.95 lakh crore in Q1 FY25.

The agriculture and allied sector grew 3.7 per cent in Q1 FY26, improving from 1.5 per cent growth in the same period last year.

Among secondary sectors, manufacturing (7.7 per cent) and construction (7.6 per cent) recorded robust growth, both exceeding 7.5 per cent in Q1 FY26.

In contrast, the ministry noted that mining and quarrying contracted by 3.1 per cent, while utilities (electricity, gas, water supply, and other services) registered subdued growth of 0.5 per cent in Q1 FY26.

Please click here to add Swarajya as your preferred and trusted news source on Google.

Also Read: India’s GDP Grows 6.2 Per Cent In Q3; FY 2024-25 Growth Pegged At 6.5 Per Cent Amid Manufacturing, Mining Slump