India’sded stronger-than-expected growth in the first quarter of the 2026-27 financial year, with GDP expanding by 7.8%. The latest figure has attracted attention because the growth came despite global economic uncertainty, elevated energy prices and continuing geopolitical tensions.
Domestic demand remained an important driver of economic activity. Government spending on infrastructure and capital projects, along with manufacturing, construction and exports, also supported overall expansion. Manufacturing growth was particularly notable, providing further evidence of continued industrial activity.
The latest performance has strengthened optimism about India’s economic outlook. Prime Minister Narendra Modi welcomed the numbers and described the result as a major achievement for the country.
Economists and businesses will now watch whether the strong momentum can continue through the remaining quarters. Global
