News: India’s real GDP grew 7.8% in Q1 FY 2026–27 (April–June 2026)à Growth was higher than 6.9% in Q1 FY 2025–26 but lower than 8.6% in Q4 FY 2025–26.

Key Drivers

• Manufacturing and several service sectors supported growth.
• Growth was relatively broad-based, with contributions from both private and government expenditure.

GDP & GVA

• GDP: Value of final goods and services produced within the economy.
• GVA: Value added by different sectors of the economy.
• Nominal GDP growth: 10.3%.
• Real GVA growth: 8.2%.

Capital Formation

• GFCF rose to 34.3% of GDP, from 31.4% a year earlier.
• Higher investment in machinery, infrastructure and productive assets can strengthen future economic capacity.

Risks

• Unfavourable monsoon and El Niño could affect agriculture and rural demand.
• Unfavourable base effect may moderate growth from Q2 onwards.