Prime Minister Narendra Modi hailed the 7.8 GDP numbers as "a herculean feat" ... and also declaring:
"Doomsayers were doomed and India bloomed…yet again!"
Personal consumption rose to 7.1%, up from 6.8% a year earlier.
Private investment doubled its pace, surging to close to 12% from just 5.8% previously.
Robust credit demand and resilient domestic consumption despite elevated prices further highlight the underlying strength of economic activity.
The most impressive aspect of the GDP growth rate between April-June 2026 has been broad-basing of the growth on multiple fronts.
The government changed the GDP base year from 2011-12 to 2022-23 in February. The new series also introduced changes to the way prices are used to convert current-price economic activity into real, inflation-adjusted growth.
Manufacturing sector growth sped up to 9.2% from 8.3% in the same period last year.
The financial services sector grew a robust 12.1% compared with 8.8%, driven by strong growth in bank credit.
Former Finance Secretary Subhash Chandra Garg has raised doubts around the headline growth number, arguing that it does not accurately reflect the underlying expansion of the economy.
“A few jobless people call themselves economists and appear on TV channels to harm the country. Do not fall for this," said Commerce Minister Piyush Goyal.
“It is unfortunate that comparison is being made of apples and oranges,” said Saurabh Garg, Secretary in the Ministry of Statistics and Programme Implementation (MoSPI).
Under the latest 2022-23 series, nominal GDP is estimated at around Rs 88.27 lakh crore in Q1FY27 compared with Rs 80 lakh crore in Q1FY26. That gives nominal GDP growth of 10.3 percent.
It is difficult to understand why some people are unable to digest that the Indian economy grew by a robust 7.8 per cent, said SBI Ecowrap. It said an “unnecessary controversy” has been created over India’s latest growth figures due to what it called incorrect interpretation of the revised GDP data.
Rising living costs, unemployment, social polarization, educational setbacks, and widening economic inequality remain major concerns, according to Opposition parties.
One of the most common concerns among citizens has been the increasing cost of essential commodities.
Fuel prices went up.
India is one of the economies most exposed to oil supply disruptions emanating from the Iran war, as it imports nearly 85% of its crude needs — mostly from the Middle East — and crude prices are stuck near $90 a barrel.
* Globally, prices of petroleum products could pose a risk to global demand.
The depreciation of the Indian rupee against the U.S. dollar is widely regarded as an indicator of economic stress. A weaker rupee increases the cost of imports, including fuel, industrial raw materials, and essential commodities, thereby contributing to inflationary pressures.
India's July industrial output growth slows to 6.7% y/y as mining contracts.
• Electricity generation rose 8.7% year-on-year in July against a revised increase of 11.3% a month earlier.
• Mining activity declined 0.9% year-on-year in July against a revised growth of 1.6% in June.
• Output of consumer durables, including cars and phones, grew 10.5% year-on-year in July against a revised 10.3% increase a month earlier.
The stronger economic performance was visible in corporate profitability and automobile sales, arguing that the GDP numbers should not be viewed in isolation.
The latest data also show a pickup in investment.
The private investment strengthened during the quarter, with gross fixed capital formation rising to 34.3 per cent of GDP from 31.4 per cent a year earlier. Corporate capital expenditure had also increased in FY26.
ends
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