India Q1 FY27 GDP Growth Report
The Ministry of Statistics & Programme Implementation released the Quarterly Estimates of Gross Domestic Product for the first quarter (April-June) of financial year 2026-27, showing sustained economic growth momentum despite global headwinds. Real GDP during Q1 FY27 grew at 7.8% year-on-year, reaching ₹81.36 lakh crore compared to ₹75.46 lakh crore in Q1 FY26. Nominal GDP registered 10.3% growth during the same period, estimated at ₹88.27 lakh crore against ₹80.00 lakh crore in the previous year.
Real Gross Value Added (GVA) showed stronger growth of 8.2% in Q1 FY27, estimated at ₹73.82 lakh crore compared to ₹68.21 lakh crore in Q1 FY26. Nominal GVA growth was even higher at 11.5%, reaching ₹80.53 lakh crore from ₹72.24 lakh crore in the comparable quarter.
Sectoral Performance and Methodology
The new series of National Accounts Statistics has adopted the Double Deflation approach for estimating the GVA of the Manufacturing sector, which separately deflates Output and Intermediate Consumption using concerned Producer Price Indices. This provides a more robust measure of real value added by appropriately capturing changes in prices of both output and inputs. The methodology follows IMF's Quarterly National Accounts Manual, 2017 guidelines.
Key data sources include Advance Estimates of Crop Production, granular level Index of Industrial Production (IIP), GST data, financial results of listed companies, banking statistics, insurance company data, Public Financial Management System data, and various price indices including granular Consumer Price Index and Producer Price Index.
Key Economic Indicators
The annexure provides detailed year-on-year growth rates for various economic indicators. Foodgrain production grew at 4.8% in Q1 FY27, with rice at 6.2% and wheat at 0.5%. Cement production index showed 8.9% growth, while finished steel consumption grew 8.3%. Infrastructure/construction goods IIP grew 7.2%, and electricity IIP showed strong recovery at 9.3% growth after a -1.5% decline in the previous year.
Transport indicators showed mixed performance: commercial vehicle sales surged 18.3%, three-wheeler sales grew 29.7%, while air passenger traffic in international services declined significantly by -19.5%. Railway net tonne km declined -0.7% but passenger km grew 8.3%.
Trade data showed exceptional performance with exports of goods and services growing 25.8% and imports growing 30.5%. Specifically, export of transport goods grew 52.2%, machinery equipment exports grew 31.9%, while imports of transport goods grew 13.5% and machinery equipment imports surged 51.5%.
Price indices showed substantial movements: PPI for Mining & Quarrying grew 19.5%, PPI for Crude Petroleum and Natural Gas surged 58.0%, PPI for Manufactured Products grew 10.7%, while PPI for Electricity declined -1.2%. Custom duty collections grew 36.1% but Union Excise declined -22.4%, and fertilizer subsidy increased significantly by 57.6%.
The next release of Quarterly GDP estimates for Q2 FY27 is scheduled on 30th November, 2026. The estimates are subject to revision based on improved data coverage and revisions from source agencies.