Industry Odisha Bureau, Aug 31: India’s real GDP growth accelerated to 7.8 per cent in the April-June quarter. The figure comfortably exceeded the Reserve Bank of India’s earlier estimate of 7 per cent. Growth moderated slightly from 8.6 per cent recorded in the previous quarter. It still surpassed the 6.9 per cent growth seen a year earlier.
Prime Minister Narendra Modi called the performance exemplary and a herculean feat. He credited Indians’ collective strength for the strong growth despite oil price shocks. Supply-chain disruptions and broader global uncertainty also posed challenges during the quarter. India still remains exposed to global energy prices and ongoing trade uncertainty.
Financial services, real estate, IT and professional services largely drove the expansion. The services sector remains a critical pillar of India’s overall economic momentum.
Real GDP touched Rs 81.36 lakh crore, up from Rs 75.46 lakh crore. Nominal GDP, unadjusted for inflation, grew 10.3 per cent to Rs 88.27 lakh crore. That compares with 8.1 per cent nominal growth in the same period last year. The stronger reading suggests economic activity clearly outpaced most recent private forecasts.
Finance Minister Nirmala Sitharaman credited the strong numbers to Indians’ hard work. She said NDA government reforms and agile economic management are bearing results. Sitharaman added the government remains committed to expanding economic opportunities for citizens.
Industrial output growth eased to 6.7 per cent year-on-year in July 2026. That followed a stronger 8.8 per cent growth recorded the previous month. Manufacturing expanded 7.3 per cent, while electricity and gas supply grew 8.7 per cent. Overall industrial momentum remained broadly positive despite the monthly slowdown in pace.
Mining and quarrying contracted 0.9 per cent, against 10.7 per cent growth last year. The contraction largely reflected sector-specific factors rather than a broader economic slowdown. The mining decline weighed on industrial output but did not erase gains. Manufacturing and electricity growth still kept India’s overall industrial activity broadly resilient.
India enters FY27 with resilient momentum, supported by services and manufacturing strength. Sustaining this pace will depend on reforms, investment and stronger global resilience. Sustained growth could support investment across infrastructure, energy and digital services sectors. Analysts said strengthening manufacturing capacity remains central to India’s broader economic ambitions. Continued reform momentum could help sustain productivity, wider competitiveness and job creation. Officials said broader employment gains would depend on continued sustained private investment.
