‹ News Blitz Economy Settled

India's GDP grew 7.8 per cent in April to June 2026

English हिंदी ಕನ್ನಡ മലയാളം தமிழ் తెలుగు

First brief 1 Sep, 10:00 IST Updated 1 Sep, 09:01 IST 3 developments 3 min read Latest ↓

The Reserve Bank of India building in Mumbai — Photo: Sailko / Wikimedia Commons · CC BY 3.0

Where it stands

On 31 August 2026 the National Statistics Office (NSO) released India's GDP data for April-June 2026. Real GDP grew 7.8 per cent compared with April-June 2025. Real GDP reached Rs 81.36 lakh crore, up from Rs 75.46 lakh crore. Real gross value added (GVA) grew faster, at 8.2 per cent. The Reserve Bank of India had expected 7 per cent growth for this quarter. Gross fixed capital formation, the investment part, rose 11.9 per cent. Private consumption rose 7.1 per cent. Services grew 10 per cent. Manufacturing grew 9.2 per cent. Agriculture and allied activities grew 3.6 per cent. The NSO will revise these early estimates later. The next quarterly release is due on 30 November 2026.

Version 1 · rewritten 1 Sep, 10:00 IST

Background

GDP is the value of all final goods and services made in India in a period. GVA is the value added by producers before product taxes. GDP equals GVA plus taxes on products minus subsidies on products. The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation releases these numbers. The NSO releases the numbers about two months after each quarter ends. April-June is the first quarter of the financial year 2026-27. The first quarter gives the first official reading of the year. Forecasters revise full-year forecasts after this reading.

How it developed

31 August 2026, 4 pm

How it started
Statistics office releases the first quarterly GDP estimate of 2026-27

The NSO publishes quarterly GDP estimates about two months after each quarter ends. The previous release on 5 June 2026 put January-March 2026 growth at 7.8 per cent. The same release put full-year 2025-26 growth at 7.7 per cent. A conflict in West Asia raised crude oil prices during April-June 2026. The NSO released the April-June 2026 estimates at 4 pm on 31 August 2026.

Ministry of Statistics and Programme Implementation Forbes India
31 Aug, 16:00 IST

New fact
NSO: GDP grew 7.8 per cent, GVA 8.2 per cent

Real GDP grew 7.8 per cent in April to June 2026. Real GDP had grown 6.9 per cent a year earlier. Real GVA grew 8.2 per cent. Nominal GDP grew 10.3 per cent, to Rs 88.27 lakh crore. Net taxes on products grew only 3.9 per cent in real terms. Slow growth in net taxes explains the gap between GDP growth and GVA growth.

Ministry of Statistics and Programme Implementation Reserve Bank of India The Federal
31 Aug, 16:05 IST

New fact
Investment led the quarter. Services and manufacturing grew fast.

Fixed investment (GFCF) grew 11.9 per cent, against 5.8 per cent a year earlier. Private consumption (PFCE) grew 7.1 per cent. Services grew 10 per cent. Manufacturing grew 9.2 per cent. Agriculture and allied activities grew 3.6 per cent. The NSO also revised January to March 2026 growth to 8.6 per cent, from 7.8 per cent.

Ministry of Statistics and Programme Implementation Reserve Bank of India The Federal
1 Sep, 09:01 IST

Settled
Economists raise full-year forecasts after strong April-June data

Chief Economic Adviser V Anantha Nageswaran spoke to the press on 31 August 2026. Nageswaran said manufacturing and services did well despite the West Asia crisis. Several economists raised their growth forecasts for 2026-27 the same evening. CareEdge Ratings now expects 7.3 per cent growth, up from 7 per cent. India Ratings and Research now expects more than 7 per cent, up from 6.8 per cent. Some economists expect growth to slow in the second half of 2026-27.

ANI Deccan Chronicle ThePrint

Why it matters for UPSC

GS3 · Indian economyPrelims · GDP and GVA

For Prelims, remember GDP equals GVA plus product taxes minus product subsidies. Real growth (7.8 per cent) removes price changes, unlike nominal growth (10.3 per cent). Quarterly GDP numbers are provisional estimates, open to revision by the NSO in later releases.

Key terms

Gross value addedGross value added (GVA) is output minus the cost of inputs. A cycle factory in Ludhiana buys steel and tyres. The finished cycle is worth more than the steel and tyres. The extra value is the factory's GVA. India's GVA is the sum of all producers' GVA.

Real versus nominal growthNominal growth includes price rises. Real growth removes price rises. A kirana shop sells the same rice at a higher price. The shop's nominal sales rise. The shop's real sales stay the same. The NSO measures real growth at 2022-23 prices.

Gross fixed capital formationGross fixed capital formation (GFCF) is spending on assets used for many years. Roads, factory sheds, machines and new houses count as GFCF. A new expressway in Uttar Pradesh adds to GFCF. GFCF is the investment part of GDP. GFCF rose 11.9 per cent in April-June 2026.

Private final consumption expenditurePrivate final consumption expenditure (PFCE) is household spending on goods and services. Food, mobile recharges, school fees and scooters all count as PFCE. PFCE is the largest part of India's GDP. PFCE rose 7.1 per cent in April-June 2026.

Net taxes on productsNet taxes on products are product taxes minus product subsidies. A product tax is a tax on a good or service, like GST on a mobile phone. A product subsidy lowers the price of a good, like the subsidy on urea. Net taxes on products link GVA to GDP. Net taxes grew 3.9 per cent in real terms in April-June 2026.

Provisional estimateA provisional estimate is an early number based on partial data. The NSO replaces provisional estimates with revised estimates later. The January-March 2026 growth number moved from 7.8 to 8.6 per cent in this way.

Sources (7)

Ministry of Statistics and Programme Implementation · official · Press Note on Quarterly Estimates of Gross Domestic Product for the First Quarter (April-June) of 2026-2701:31
Forbes India · GDP Data Preview: Here's What Economists Expect From India's Q1 GDP Report01:31
The Federal · India's real GDP growth hits 7.8 per cent in Q1 FY27, says govt01:31
Reserve Bank of India · official · Monetary Policy Statement, 2026-27: Resolution of the Monetary Policy Committee, August 5, 202601:31
Deccan Chronicle · India's GDP Growth Hit 7.8% In Q1FY27 Despite West Asia Crisis: CEA01:31
ANI · India's 7.8% Q1 growth defies West Asia shock, but economists see moderation ahead01:31
ThePrint · 7.8% Q1 growth shows Indian economy has absorbed oil shock as domestic demand cushions global headwinds01:31

India's GDP grew 7.8 per cent in April to June 2026

Where it stands

Background

How it developed

Statistics office releases the first quarterly GDP estimate of 2026-27

NSO: GDP grew 7.8 per cent, GVA 8.2 per cent

Investment led the quarter. Services and manufacturing grew fast.

Economists raise full-year forecasts after strong April-June data

Why it matters for UPSC

Key terms