
Sana Shaikh
5 Sept 2026
India’s economy records stronger-than-expected growth of 7.8% in the first quarter of FY 2026–27, surpassing the RBI’s 7% forecast
The Indian economy has begun the financial year 2026–27 with a strong start, as the real GDP for the first quarter of the year (Q1 FY27) rose by 7.8%. The robust expansion has reinforced India's reputation as one of the fastest-growing leading economies in the world.
The growth rate of 7.8% was much higher than the 7.0% projected by the Reserve Bank of India. The excellent results have been welcomed by the government and by the international financial bodies. But economists have also questioned the revisions and whether the data reflects the underlying strength of the domestic economy in a global uncertain environment.
Overall, the strong GDP growth is a positive sign for India’s economic outlook. It reflects the resilience of the Indian economy in the face of the challenges. Yet economists will have to wait and see in coming quarters to see if this can be maintained.
