New Delhi, Sept. 1 -- India's real GDP grew 7.8% in the April-June quarter of 2026-27, exceeding the Reserve Bank of India's estimate of 7%. The stronger-than-expected performance came despite the uncertain global environment and the prolonged West Asia conflict.
Three key factors helped drive the growth: stronger manufacturing and services activity, a sharp increase in investment and steady private consumption.
The manufacturing sector grew 9.2% during the quarter, compared with 8.3% in the same period a year earlier. Services growth also accelerated to 10%, up from 8% a year ago. Agriculture, however, recorded more modest growth of 3.6%, compared with 4.4% in the corresponding quarter last year. Investment provided another major boost. Gross fixed capital formation, a measure used as a proxy for investment in the economy, increased by nearly 12% during the quarter. Private consumption also remained firm, supporting overall economic activity. The latest growth figure was higher than expected even though the economy continues to face external pressures. Elevated crude oil prices, food inflation and the possibility of a stronger El Niño could pose risks to growth in the coming months.
The resilience in economic activity is particularly significant given the disruption caused by the West Asia conflict. Higher energy prices and supply concerns could affect businesses and consumers if they persist. While the latest numbers point to strong momentum, the outlook remains dependent on how these risks develop.
A sustained rise in energy prices, higher food inflation and weather-related pressures could weigh on growth going forward.
Published by HT Digital Content Services with permission from Millennium Post.