India’s 7.8% GDP Growth Debate:
The MoSPI rejected claims that India’s Q1 FY 2026–27 real GDP growth of 7.8% was inflated, stating that estimates use the 2022–23 base year, Producer Price Indices (PPI), and double-deflation methodology.
- Real GDP reached ₹81.36 lakh crore (7.8% YoY growth), while nominal GDP reached ₹88.27 lakh crore (10.3% YoY growth).
- Real GVA Outturn: Real GVA expanded by 8.2% to ₹73.82 lakh crore, outpacing nominal GVA growth of 11.5% (₹80.53 lakh crore).
Sectoral Drivers: - Manufacturing GVA: Grew 9.2% in real terms (compared to 7.7% nominal growth), yielding a negative implicit GVA deflator of -1.5%.
- Tertiary / Services: Surged 10.0%, anchored by Financial, Real Estate, and Professional Services at 12.1%.
- Primary Sector: Grew 2.9%, with Agriculture, Forestry & Fishing expanding at 3.6%.
- Mining & Quarrying: Contracted 2.4% in volume terms (IIP-based) but posted 22.3% nominal growth due to high global crude oil and metal ore price inflation (PPI up >60%).
- Demand-Side Strength: Gross Fixed Capital Formation (GFCF) expanded by 11.9% (up from 5.8% in Q1 FY26), and Private Final Consumption Expenditure (PFCE) grew by 7.1%.
