EconomyMonday, 31 August 2026·The Hindu - Economy
India’s GDP grows 7.8% in Q1 FY27, with manufacturing and services leading
India’s GDP grew 7.8% in Q1 FY27, faster than a year ago but slower than the previous quarter.
Key highlights
Direct fact
In the April-June 2026 quarter (Q1 FY27), India’s Gross Domestic Product (GDP) grew by 7.8%, as released in August 2026, compared with 6.9% in Q1 FY26 and 8.6% in the January-March 2026 quarter.
Key specifics
- India’s GDP growth in Q1 FY27 was 7.8%.
- Q1 FY27 growth was higher than 6.9% in Q1 FY26 but lower than 8.6% in Q4 FY26.
- Manufacturing grew 9.2% in Q1 FY27, a three-quarter high.
- Gross Fixed Capital Formation (GFCF) rose to 34.3% of GDP in nominal terms from 31.4% last year.
- The tertiary sector grew 10%, while agriculture slowed to 3.6% and mining and quarrying contracted 2.4%.
Exam lens
GDP and national income MCQ focus: Q1 FY27, 7.8%, manufacturing 9.2%, GFCF 34.3%, tertiary sector 10%. TNPSC may ask which sectors drove growth and what GFCF indicates in the national accounts.