Our Bureau
New Delhi
India’s economy grew a stronger-than-expected 7.8% in the April-June quarter of 2026-27, comfortably beating the Reserve Bank of India’s 7% forecast and economists’ 7.1% estimate, official data showed. The performance highlights the resilience of domestic economic activity despite global uncertainties and geopolitical tensions in West Asia.
The latest growth figure, however, was lower than the revised 8.6% recorded in the January-March quarter. It was nevertheless significantly higher than the 6.9% growth recorded in the corresponding quarter a year earlier.
Manufacturing and services emerged as key drivers of the expansion. Manufacturing grew 9.2% during the quarter, while the services sector expanded by 10%. Within services, financial, real estate, information technology and professional services recorded particularly strong growth of 12.1%.
The performance comes against a challenging global backdrop, marked by elevated energy prices and geopolitical tensions in West Asia. India’s ability to maintain strong domestic demand despite these pressures has strengthened expectations that full-year growth could remain above 7%.
Economists have consequently begun revising their growth forecasts upwards, with some viewing the RBI’s earlier FY27 projection as increasingly conservative.
However, risks remain, particularly from higher crude oil prices, inflation, currency pressures and global uncertainty. For now, the latest GDP numbers suggest that India’s growth engine continues to retain considerable momentum.