New Delhi, August 30, 2025: India’s economy accelerated in Q1 FY26, with real GDP up 7.8% year-on-year. Real GVA rose 7.6%, signalling broad-based momentum with services in the lead. Nominal GDP grew 8.8% in the quarter.
Key numbers at a glance
- Real GDP: ₹47.89 lakh crore (Q1 FY26) vs ₹44.42 lakh crore (Q1 FY25), up 7.8%.
- Real GVA: ₹44.64 lakh crore, up 7.6%.
- Nominal GDP: ₹86.05 lakh crore, up 8.8%.
- Services (Tertiary): up 9.3%.
- Manufacturing: up 7.7%; Construction: up 7.6%.
- Agriculture & allied: up 3.7%.
- Mining & quarrying: down 3.1%; Electricity, gas, water, utilities: up 0.5%.
What drove the growth
Services did the heavy lifting. Trade, transport, finance, real estate and public administration posted strong gains. Manufacturing and construction added heft, pointing to resilient urban demand and steady project execution. Agriculture improved versus last year, offering a helpful cushion for rural incomes.
Demand-side pulse: consumption, capex, government spend
- PFCE (household consumption): real growth at 7.0%. Demand stayed healthy across categories, though a touch softer than last year.
- GFCF (investment): up 7.8% in real terms. Private and public capex continued, aided by construction and core industries.
- GFCE (government consumption): bounced back, up 9.7% in nominal terms, supporting services and welfare-linked activity.
Why it matters
The Q1 print beats many street estimates and signals that India remains one of the fastest-growing major economies. Strong services and stable manufacturing reduce downside risks from global headwinds. A wider growth base helps tax collections, jobs, and corporate earnings.
Methodology and caveats
These are quarterly estimates compiled by the NSO using a benchmark-indicator method. They draw on indicators such as IIP, company results, transport data, GST, credit flows, commodity output, and budget data. Revisions are common as more information arrives, so numbers may be updated in subsequent releases.
What to watch next
Keep an eye on external trade conditions, rainfall distribution, food inflation, and project pipelines. If investment stays firm and services hold up, full-year growth could stay robust. The next Q2 FY26 release is due on November 28, 2025.
