India witnessing continued economic resilience; manufacturing, services perform well despite West Asia crisis: CEA Nageswaran

Chief economic advisor V. Anantha Nageswaran on Monday said Indian economy is witnessing continued resilience in growth performance and has weathered the global uncertainties well. Addressing a press conference after the release of Q1FY27 GDP numbers, Nageswaran said manufacturing and services have done “quite well” despite West Asia crisis.

He said the economy did well in the first quarter on the back of government’s efforts to ensure that there no input side disruptions. According to data released short while ago by the government, real GDP or GDP at constant Prices in Q1 of FY26-27 is estimated at ₹81.36 lakh crore, showing a growth rate of 7.8%.

“We are witnessing continued resilience in the Indian growth performance, and that is the key message here. Resilience in the quarterly data is well backed by the high frequency data. The quarterly real GDP, after a slight lull towards the latter part of 2024-25, has picked up well and has weathered global uncertainties well,” Nageswaran said.

“All the sectors have contributed. Agriculture, slightly less so, but we have manufacturing and services doing quite well in the first quarter despite the West Asia related uncertainty, partly because of the government’s efforts to make sure that the input provisions were not affected by the crisis in West Asia,” he added.

“Nominal GDP or GDP at Current Prices in Q1 of FY2026-27 is estimated at ₹88.27 lakh crore, against ₹80.00 lakh crore in Q1 of FY2025-26, showing a growth rate of 10.3%,” the release said.

“Secondary sector has registered a growth of 8.6% at constant prices. Primary sector has observed 2.9% growth rate at constant prices mainly contributed by the performance of agriculture and allied sector which registered 3.6% growth during Q1 of FY 2026-27,” the release said.

“On the expenditure-side, Gross Fixed Capital Formation (GFCF) recorded double-digit (11.9%) growth rate at constant prices during Q1 of FY 2026-27, against the growth of 5.8% in Q1 of FY 2025-26. Private Final Consumption Expenditure (PFCE) registered a growth of 7.1% at constant prices during the quarter,” it said.