GDP's Impressive Rise
In Q1 FY26, Real GDP hit Rs 47.89 lakh crore, growing by 7.8% compared to Rs 44.42 lakh crore in Q1 FY25. Nominal GDP rose to Rs 86.05 lakh crore, an 8.8%
increase from Rs 79.08 lakh crore the previous year. This solid growth showcases India's resilience amidst global challenges, reflecting positive economic momentum.
GVA: Key Sector Growth
Real GVA, excluding taxes and subsidies, reached Rs 44.64 lakh crore, a 7.6% increase from Rs 41.47 lakh crore a year ago. Nominal GVA climbed to Rs 78.25 lakh crore, marking an 8.8% rise from Rs 71.95 lakh crore. The services sector showed the strongest growth at 9.3%, a rise from 6.8% during the same period last year.
Sectoral Performance Insights
Agriculture and allied activities grew by 3.7%, better than last year's 1.5%. The secondary sector flourished, with manufacturing growing 7.7% and construction 7.6%. However, mining and quarrying contracted by 3.1%, and electricity, gas, water supply grew only 0.5%. GFCF rose by 7.8% in Q1 FY26.
Spending and Investments
Government Final Consumption Expenditure (GFCE) increased by 9.7% in nominal terms. Private Final Consumption Expenditure (PFCE) grew by 7.0% in real terms, which was slower than the previous year's 8.3%. Gross Fixed Capital Formation (GFCF) rose by 7.8% at constant prices in Q1 FY26, indicating economic investment.
Strong Growth Factors
India's economy began FY26 on a strong note, surpassing expectations. The strong GDP growth of 7.8% was supported by the service sector. The data released by MoSPI highlighted this significant economic expansion, showcasing a positive outlook. This growth signifies India's economic resilience and potential.
