India's economy picks up pace amid inflation concerns, GDP growth in the first quarter at 7.8% shocked by the latest MoSPI data; Real GDP grows 7.8 per cent in April-June quarter, nominal GDP up 10.3 per cent
In recent times, there have been fears of pressure on the Indian economy due to inflation and global economic conditions. In such a situation, the real GDP growth of 7.8 percent in the first quarter is being seen as a sign of the strength of the economy. The GDP data helps in understanding the direction in which the state of production, consumption, investment and economic activities are going in the country. 2022-23 is now the new base year of GDP
New Delhi: Questions were being raised about the pace of the economy due to rising inflation in the country, but the data of the first quarter of the financial year 2026-27 has changed the picture to a great extent. According to the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, August 31, India's real GDP has registered a growth of 7.8 per cent during April-June 2026.
According to the government, despite the challenges and uncertainties in the global economy, the Indian economy has maintained its growth momentum. Nominal GDP grew by 10.3 per cent during the same period.
Strong economic performance amid inflation
In recent times, there have been fears of pressure on the Indian economy due to inflation and global economic conditions. In such a situation, the real GDP growth of 7.8 percent in the first quarter is being seen as a sign of the strength of the economy.
The GDP data helps in understanding the direction in which the state of production, consumption, investment and economic activities are going in the country.
2022-23 is now the new base year of GDP
This time the GDP data has been calculated by taking the financial year 2022-23 as the new base year. The government had released the new series for annual and quarterly calculation of GDP on February 27, 2026.
Thereafter, provisional figures of GDP for FY 2025-26 were released on 5th June 2026. Under the new series, the current picture of the economy is now being presented on the basis of more comprehensive and updated data.
Revision of old GDP data
MoSPI has not only released the first quarter figures but also updated the figures of previous years. The Ministry has revised the annual GDP data for FY 2022-23, 2023-24 and 2024-25.
For this, data from various government departments and official sources have been used along with the newly available data.
Apart from this, the quarterly GDP data from the first quarter of FY 2022-23 to the fourth quarter of FY 2025-26 has also been updated. The new data has also been included in the provisional GDP data for FY 2025-26.
What data is used to calculate GDP?
The calculation of GDP is a comprehensive process. It includes data on industrial production, prices, banking services and administrative data received from various government departments.
MoSPI has also released data related to consumption, investment and other expenses in the economy along with GDP. These figures are based on two sources. 2022-23 at constant prices and current prices.
What do these figures indicate?
The real GDP growth of 7.8 per cent in the first quarter comes at a time when the global economy is grappling with multiple challenges. In such a situation, these figures give positive signals about the internal strength of the Indian economy, economic activity and the pace of development.
However, factors such as inflation, global market conditions, investment and domestic demand will play a key role in determining India's economic growth trajectory in the coming quarters.
The first quarter numbers have made one thing clear. Despite inflationary concerns, the Indian economy has started the financial year 2026-27 on a strong note
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