India Shrugs Off Oil Shock to Post 7.8% Growth in Q1, PM Modi Hails ‘Herculean Feat’
Services, manufacturing and exports offset oil-price pressure as private consumption and investment also strengthened, the government said.
- On Monday, the Ministry of Statistics and Programme Implementation reported India's economy expanded 7.8 percent in the first quarter of fiscal 2026-27, exceeding the Reserve Bank's 7 percent forecast.
- Chief Economic Adviser V. Anantha Nageswaran cited 'continued resilience' across sectors, with services growing 10 percent, manufacturing expanding 9.2 percent, and exports rising 12 percent.
- Private final consumption expenditure rose 7.1 percent and Gross fixed capital formation grew 11.9 percent, reflecting strong automobile sales and infrastructure spending that supported domestic demand.
- Valbha Shakya of the Centre for Social and Economic Progress noted that government capital expenditure largely cushioned growth, though she stressed private investment must accelerate to sustain momentum.
- Shakya projected growth could remain around 7 percent or higher if oil prices retreat and monsoon conditions improve, though subdued private investment, headline inflation, and energy costs pose key risks.
19 Articles
19 Articles
India’s economy grows at 7.8 per cent despite global turmoil
New Delhi: India has started financial year 2026-27 with stronger-than-expected economic momentum. Real GDP grew 7.8 per cent in the April-June quarter, according to data released by the Ministry of Statistics and Programme Implementation. Real GDP at constant prices was estimated at Rs 81.36 lakh crore, compared with Rs 75.46 lakh crore in the same quarter of FY2025-26. Nominal GDP increased 10.3 per cent to Rs 88.27 lakh crore. The growth figu…
Indian Markets Open Lower Despite 7.8% GDP Growth Amid Weak Global Cues, High Crude Prices
Get latest articles and stories on Business at LatestLY. Indian benchmark indices opened lower on Tuesday, despite the domestic economy recording robust GDP growth of 7.8 per cent in the first quarter, as weak global cues, elevated crude oil prices and rising US Treasury yields continued to weigh on investor sentiment. Business News | Indian Markets Open Lower Despite 7.8% GDP Growth Amid Weak Global Cues, High Crude Prices.
India rides out West Asia storm as GDP grows 7.8% in April-June quarter
India's economy demonstrated remarkable strength with a 7.8% growth rate in the June quarter, outpacing earlier estimates and navigating through global economic uncertainties. The surge was fueled by strong investments and robust manufacturing output. Furthermore, the services sector emerged as an essential driver of growth, hinting at a bright outlook as forecasts indicate ongoing economic resilience for the nation.
7.8% Q1 growth shows Indian economy has absorbed oil shock as domestic demand cushions global headwinds
While the Q1 figures surpassed expectations, analysts have pointed to subdued private investment, headline inflation, vulnerability to energy costs and volatile rainfall as key risks.
The Indian economy grew above expected in the second quarter of this year, reaching 7.8% of progress despite the international difficulties created by the crisis in the Strait of Ormuz, which greatly impact India. Faced with the result, Prime Minister Modi left praises torn, speaking in a herculean effect. Data from the first quarter of the fiscal year 2027, that is, between April and June, show a homologous growth of 7.8%, which is above the pr…
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