'Doomsayers were doomed and India bloomed yet again', PM Modi hails 7.8% GDP growth

Prime Minister Narendra Modi on Monday hailed India’s 7.8% economic growth in the first quarter (Q1) of FY27, describing the performance as an “exemplary” and “herculean feat” achieved despite oil price shocks, supply-chain disruptions, and global uncertainties.

"India’s exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat. The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties. Doomsayers were doomed and India bloomed…yet again," said PM Modi in a post on X.

The comments came as Modi is on a four-day state visit to Central Asia. He arrived in Uzbekistan on August 29 for a bilateral visit at the invitation of President Shavkat Mirziyoyev. He is also in Kyrgyzstan for a two-day summit of the Shanghai Cooperation Organisation (SCO), alongside Russian President Vladimir Putin, Chinese President Xi Jinping, and leaders from more than a dozen other countries.

GDP logs 7.8% in Q1FY26

India’s economy expanded 7.8% in the April-June quarter of FY27, marking the first full quarter during the US-Iran war, which had been expected to weigh on economic activity. However, growth moderated from 8.6% in the January-March quarter of FY26, representing a sequential decline of 80 basis points.

Govt committed to expanding economic opportunities: FM

Finance minister Nirmala Sitharaman also said 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. She 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.

“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 government said in a release.

Real gross value added (GVA) in the first quarter of FY27 stood at an estimated ₹73.82 lakh crore, compared with ₹68.21 lakh crore in the year-ago period, registering growth of 8.2%. Nominal GVA grew 11.5% to ₹80.53 lakh crore from ₹72.24 lakh crore a year earlier.

The tertiary sector emerged as a key contributor to overall economic growth, expanding 10% at constant prices during the quarter. The growth was primarily driven by financial, real estate, information technology and professional services, which recorded a 12.1% expansion in Q1 FY27.

The secondary sector also maintained a strong pace of growth, expanding 8.6% at constant prices during the quarter.

The primary sector, meanwhile, grew 2.9% at constant prices. Agriculture and allied activities remained a key contributor within the sector, registering 3.6% growth during the April-June quarter.

The government said the latest growth figures reflected the resilience of the Indian economy despite a challenging global environment marked by geopolitical tensions, disruptions to supply chains, and volatility in energy prices.

Modi welcomed the numbers, highlighting the resilience of domestic economic activity in the face of external headwinds. The Prime Minister’s comments also come at a time when policymakers and economists have been closely monitoring the impact of geopolitical tensions and energy price movements on India’s growth outlook.