India’s GDP grows 7.8% in April-June quarter

• India’s economy grew at a faster-than-expected 7.8 per cent in the April-June quarter, according to the revised GDP series.

• The outcome marked the highest Q1 real GDP growth during the four-year period from 2023-24 to 2026-27. 

• This outcome has exceeded the Reserve Bank of India’s estimate of 7 per cent for the quarter.

• The estimates reflect the use of new price and production indices with base year 2022-23. 

• The estimates incorporate the new Output Producer Price Index and Banking Services Price Index, both based on 2022-23, along with updated administrative data.

What is Gross Domestic Product (GDP)?

• Gross Domestic Product (GDP) is the most common measure for the size of an economy. 

• It measures the total value of goods and services produced by that economy during a specific time period, typically a year or a quarter. 

• This helps to understand changes in the size of an economy across different time periods and serves as a broad indicator for the standard of living of its population.

• It can be calculated for a country, a region, or for groups of countries, such as the European Union.

• Policymakers, businesses, and institutions use GDP to make key economic decisions.

Key points of the Quarterly Estimates:

• Real GDP, or GDP at Constant Prices, is estimated at Rs 81.36 lakh crore in Q1 FY 2026-27.  It recorded 7.8 per cent rise, compared with 6.9 per cent in Q1 FY 2025-26.

• Nominal GDP, or GDP at Current Prices, is estimated at Rs 88.27 lakh crore. It recorded a 10.3 per cent rise, compared with 8.1 per cent last year.

• Real Gross Value Added (GVA) is estimated at Rs 73.82 lakh crore, recording 8.2 per cent growth, compared with 7 per cent last year.

• Nominal GVA is estimated at Rs 80.53 lakh crore, recording 11.5 per cent growth, compared with 8.1 per cent last year.

• The primary sector observed 2.9 per cent growth rate at constant prices mainly contributed by the performance of ‘Agriculture and Allied’ sector which registered 3.6 per cent growth during Q1 of FY 2026-27.

• The secondary sector has registered a growth of 8.6 per cent at constant prices.

• The tertiary sector has boosted the performance of the economy by registering growth of 10 per cent at constant prices, mainly driven by the ‘financial, real estate, IT and professional services’ sector which has observed 12.1 per cent growth during Q1 FY 2026-27.

(The author is a trainer for Civil Services aspirants.)