Reforms, agile management led to strong GDP growth; Modi govt committed to expanding economic opportunities: FM
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Finance minister Nirmala Sitharaman today said the central government's reforms and agile management of the economy has led to robust GDP growth in the first quarter of the current financial year.
FM said the credit goes to the people of India and their hard work and added that the government led by Prime Minister Narendra Modi is committed to expanding economic opportunities for the citizens of the country.
What do the GDP numbers indicate?
“Estimated growth of real GDP in Q1 of FY 2026–27 is 7.8%. Nominal GDP in Q1 of FY 2026–27 is estimated to have grown by 10.3%, while Real GVA has recorded growth of 8.2%,” FM Sitharaman said in a post on X.
“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. The NDA Government, led by PM Shri @narendramodi, remains committed to further expanding economic opportunities for all our citizens,” FM said in the post.
Beating the Iran war blues, the Indian economy showcased a robust growth of 7.8% in the first quarter of the current financial year, compared with 6.9% in the same in the same quarter of the previous financial year.
“Real GDP or GDP at Constant Prices in Q1 of FY 2026-27 is estimated at ₹81.36 lakh crore, against ₹75.46 lakh crore in Q1 of FY 2025-26, showing a growth rate of 7.8%,” said a release from the ministry of statistics and programme implementation.
“Nominal GDP or GDP at Current Prices in Q1 of FY 2026-27 is estimated at ₹88.27 lakh crore, against ₹80.00 lakh crore in Q1 of FY 2025-26, showing a growth rate of 10.3%,” the release said.
“Real GVA in Q1 of FY 2026-27 is estimated at ₹73.82 lakh crore, against ₹68.21 lakh crore in Q1 of FY 2025-26, showing a growth rate of 8.2%. Nominal GVA in Q1 of FY 2026-27 is estimated at ₹80.53 lakh crore, against ₹72.24 lakh crore in Q1 of FY 2025-26, showing a growth rate of 11.5%,” it added.
How did the various sectors perform?
According to the data from the government, tertiary sector has boosted the performance of the economy by registering growth of 10.0% at constant prices, mainly driven by the financial, real estate, IT and professional services sector, which has observed 12.1% growth during the Q1, FY 2026-27.
The “Secondary sector has registered a growth of 8.6% at constant prices. The 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.
The GDP data has beaten earlier projections and estimates. Several estimates had pegged Q1FY27 GDP growth in the range of 7%-7.7%. EY India’s August Economy Watch pegged the growth in the range of 7%-7.2% and said the robust outlook is anchored by an aggressive frontloading of capital expenditure. The agency said the capital expenditure surged by 23.7% in the first quarter of the fiscal.