‘Doomsayers were doomed’: Why India Q1 Real, Nominal GDP are table-thumping numbers; PM Modi says 'herculean feat'

‘Doomsayers were doomed’: Why India Q1 Real, Nominal GDP are table-thumping numbers; PM Modi says 'herculean feat'(@BJP4India)AI Quick ReadMint Explainer: India's economy grew by 7.8 percent in the April-June quarter, beating analyst expectations, official data released on 31 August showed.

"Indian economy has sustained growth momentum despite global headwinds," the data released by the Ministry of Statistics and Programme the ministey of statistics said in a press statement on 31 August. The figure exceeded economists' projections.

GDP growth was estimated at 7.4 per cent in a Mint poll of 21 economists. Growth was slower than 8.6 per cent in Q4 of FY26 (revised from 7.8% earlier) but higher than 6.8 per cent in the corresponding quarter of the previous financial year.

In its latest monetary policy review in August, the Reserve Bank of India pegged growth in the June quarter at 7 per cent (up from an earlier projection of 6.6%) and raised its FY27 growth projection to 6.7 per cent from 6.6 per cent.

The numbers offer a sliver of hope amid the global uncertainty due to US-Iran war. The table-thumping numbers come amid a challenging global environment marked by geopolitical tensions, oil shocks and economic uncertainty.

Why are these numbers table-thumping and why did PM Modi called them a ‘herculean feat’, Mint explains. While agricultural growth remained subdued, manufacturing and services surged, bolstering growth beyond even the Reserve Bank of India's 7 per cent estimate, the Indian Express reported.

A sharp surge of nearly 12 per cent in gross fixed capital formation, the proxy for investments in the economy, also provided the required push to the overall growth, along with a firm growth in private consumption, the report said.

Strong growth in manufacturing and services, along with a sharp rise in investment, helped propel the growth rate to 7.8 per cent in Q1, the report said. While the manufacturing sector grew by 9.2 per cent in April-June, up from 8.3 per cent in the same quarter last year, the tertiary sector, or services, expanded 10 per cent, higher than 8 per cent a year ago.

Agriculture recorded a modest growth of 3.6 per cent in Q1 as against 4.4 per cent in the corresponding quarter a year ago. -Real GDP is estimated to grow by 7.8% in Q1 of FY 2026-27, compared with 6.9% in Q1 of FY 2025-26.

-Nominal GDP grew 10.3% in Q1 of FY 2026-27, compared with 8.1% in Q1 of FY 2025-26. -Real and Nominal GVA are projected to grow by 8.2% and 11.5%, respectively, in Q1 of FY 2026-27. -The tertiary sector has boosted the performance of the economy by registering growth of 10.0% at Constant prices, mainly driven by the ‘Financial, Real Estate, IT and Professional Services’ sector, which has observed 12.1% growth during Q1, FY 2026-27.

-The secondary sector has registered a growth of 8.6% at Constant prices.