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NEW DELHI: India's economy grew at a faster-than-expected 7.8 per cent in the April-June quarter, showing resilience in the face of concerns that the war in Iran and resulting global economic uncertainty could weigh on growth.
Gross domestic product (GDP) growth in the first quarter of the 2026-27 fiscal year slowed from a barnstorming 8.6 per cent in the previous quarter, but remained well above expectations when the conflict erupted and disrupted energy markets.
The pace, that keeps India as the world's fastest growing major economy, also exceeded the Reserve Bank of India's forecast of 7 per cent for the quarter, underscoring the strength of domestic economic activity despite heightened geopolitical risks.
The central bank has projected the economy to expand 6.7 per cent in the full 2026-27 fiscal year.
The Q1 growth compares to 6.9 per cent expansion in the year-ago quarter, according to government data released on Monday.
The stronger-than-expected quarterly performance suggests India's growth momentum has so far held up against external shocks, including the Iran conflict, which had raised concerns over higher energy prices, inflationary pressures and weaker global demand.
The data will offer some relief to policymakers as they balance efforts to sustain growth with risks stemming from geopolitical tensions and volatile commodity markets.
Real Gross Domestic Product, or GDP at constant prices, in the first quarter of FY27 is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in the corresponding quarter of 2025-26, showing a growth rate of 7.8 per cent, Ministry of Statistics and Programme Implementation (MoSPI) said.
"Indian economy has sustained growth momentum despite global headwinds," the ministry said.
Nominal GDP, or GDP at current prices, in the April-June quarter of the current fiscal year is estimated at Rs 88.27 lakh crore, against Rs 80 lakh crore in the first quarter of 2025-26, showing a growth rate of 10.3 per cent.