‘Great sign for the year ahead’: Sitharaman hails India’s 7.8% Q1 growth, says economy stands out globally

Finance Minister Nirmala Sitharaman on Tuesday described India’s 7.8% economic growth in the first quarter of FY27 as a “great sign for the year ahead”, saying the economy has continued to stand out globally despite a challenging external environment.

“Q1 of FY 2026–27 has come out, and we’ve clocked an impressive 7.8% growth. India’s economy continues to stand out on the global stage,” Sitharaman said in a post on social media. She said the strong start to the financial year reflected the “hard work of every Indian” as well as the vision and leadership aimed at taking the country towards Viksit Bharat by 2047.

The Finance Minister’s comments followed the release of official GDP data showing that real GDP grew 7.8% in the April-June quarter, accelerating from 6.5% in the corresponding quarter of FY26. The Q1 growth was also significantly higher than the Reserve Bank of India’s earlier estimate of 6.5%.

Manufacturing, services drive Q1 expansion

The latest growth numbers point to broad-based economic activity, with manufacturing and services emerging as key drivers. Manufacturing Gross Value added (GVA) grew 9.5% during the quarter, while financial, real estate and professional services expanded 9.3%.

The secondary sector recorded strong growth, while agriculture and allied activities also remained in positive territory. Real gross value added (GVA) rose 7.8% in Q1, indicating that the expansion extended beyond headline GDP.

The stronger-than-expected growth comes at a time when the global economy continues to face uncertainty from geopolitical tensions, shifting trade policies and weaker external demand in several major markets.

Strong start, but global risks remain

Sitharaman said India had delivered strong growth “right from the first quarter” despite these global challenges, suggesting that domestic economic activity continues to provide resilience.

The Q1 numbers also provide a stronger starting point for the government's FY27 growth ambitions, although the pace of expansion could face pressure from external risks during the remaining quarters.

The government has continued to emphasise domestic demand, manufacturing, infrastructure investment and policy support as key pillars of medium-term growth. The latest GDP print therefore assumes significance not only for the near-term growth outlook but also for the government's longer-term objective of transforming India into a developed economy by 2047.

Sitharaman said the Q1 performance was evidence that the efforts of Indians were “paying off”, while linking the growth momentum to the broader Viksit Bharat vision.