India’s real GDP is estimated to grow 7.8% in Q1 FY2026-27, accelerating from 6.9% recorded in the corresponding quarter of FY2025-26. Nominal GDP growth stood at 10.3%, compared with 8.1% a year earlier.
The economy’s performance was supported by strong activity across sectors. The tertiary sector grew 10.0%, led by Financial, Real Estate, IT and Professional Services, which expanded 12.1%. The secondary sector registered 8.6% growth, while the primary sector grew 2.9%, with Agriculture and Allied activities expanding 3.6%.
On the expenditure side, Gross Fixed Capital Formation (GFCF) grew 11.9% at constant prices, significantly higher than the 5.8% growth recorded in Q1 FY2025-26, indicating strengthening investment activity. Private Final Consumption Expenditure (PFCE) also increased 7.1% during the quarter.
The strong GFCF growth points to continued momentum in capital expenditure, infrastructure development and project investment during FY2026-27.
