India Records 7.8% GDP Growth in April-June Driven by Investment and Manufacturing Surge

India's real GDP grew by 7.8 per cent in the April-June quarter, outpacing the Reserve Bank of India's 7 per cent growth forecast for the period. Finance Minister Nirmala Sitharaman stated on Monday that the strong economic performance reflects the impact of reforms undertaken by the NDA government and agile economic management.

According to data released by the Ministry of Statistics and Programme Implementation, the growth was supported by a surge in investment and manufacturing. Nominal GDP in the first quarter of FY 2026-27 is estimated to have grown by 10.3 per cent, while real gross value added (GVA) recorded an 8.2 per cent growth rate.

“The credit for this strong performance goes to the people of India and their hard work. Reforms undertaken by the NDA Government, together with an agile management of the economy, are bearing results,” Sitharaman said in a post on X.

The Finance Minister further added that the Narendra Modi-led government remains committed to expanding economic opportunities for all citizens. In a separate fiscal update, India's fiscal deficit reached 26.8 per cent of the FY27 target by July.

"A 7.8% GDP growth rate that surpasses the Reserve Bank of India's forecast is a positive indicator for the broader business and startup ecosystem. When manufacturing and investments surge, it directly translates to better market sentiment, increased capital availability, and stronger business confidence. For entrepreneurs and investors in India, macroeconomic stability and robust foundational growth create a predictable environment for long-term planning, scaling operations, and driving sustainable business expansion across sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes