PR No – 170
31st Aug 2026
New Delhi
India’s GDP sees broad-based growth : PHDCCI
The Real GDP grew by 7.8% in Q1 FY 2026-27, against 6.9% experienced during Q1 FY 2025-26, coming at a broad-based industry growth backdrop, said Mr. Rajeev Juneja, President, PHDCCI.
Real GDP (Constant Prices) in Q1 FY 2026-27 is estimated at ₹81.36 lakh crore, against ₹75.46 lakh crore in Q1 FY 2025-26. GDP at Current Prices (Nominal GDP) witnessed a growth of 10.3% in Q1 FY 2026-27, against the growth of 8.1% during Q1 FY 2025-26.
GDP at Current Prices in Q1 FY 2026-27 is estimated at ₹88.27 lakh crore, against ₹80 lakh crore in Q1 FY 2025-26.
Real and Nominal GVA grew by 8.2% and 11.5% respectively in Q1 of FY 2026-27 over Q1 FY2025-26.
At the backdrop, growth was broad-based as Cement Production Index registered a growth of 8.9%, IIP Infrastructure/ Construction Goods grew by 7.2%, IIP Electricity grew by 9.3%.
Demand indicators viz. Sales of Commercial Vehicles grew by 18.3%, Sales of Three Wheelers grew by 29.7%, Cargo Handled at Major Ports grew by 6.2%, Household Vehicle Registration grew by 15.9%, Passenger Transport Vehicle Registration grew by 13.9%, Goods Transport Vehicles Registration grew by 20.1%.
On the production side, IIP Capital Goods grew by 15.2%, IIP (Manufacture of Other Transport Equipment grew by 19.5%, IIP Manufacture of computer, electronic and optical products grew by 12.4%, IIP Manufacture of Electrical Equipment grew by 27%, IIP Manufacture of machinery and equipment n.e.c. grew by 9.1%.
In the external sector, export of Goods and Services grew by 25.8%, Export of Transport Goods grew by 52.2%, in Q1 2026-27 (y-o-y). This shows a strong picture of India’s domestic production, demand, employment and technology driven growth.
India’s service sector has boosted the performance of the economy by registering growth of 10% at constant prices, driven by the ‘Financial, Real Estate, IT and Professional Services’ sector growing at 12.1%, Trade, Hotels, Transport, Communication & Services related to Broadcasting, Storage at 8.5% and Public Administration, Defence & Other Services at 7.5%, during the Q1, FY 2026-27.
The secondary sector has registered a growth of 8.6% at constant prices, supported by the Manufacturing sector growing at 9.2%, Electricity, Gas, Water Supply & Other Utility Services at 8.9% and Construction at 7.7%, during the Q1, FY 2026-27. This displays India’s strong industrial sector and resilient domestic demand.
On the Expenditure-side, the double digit growth in Gross Fixed Capital Formation (GFCF) at 11.9% and high growth in Private Final Consumption Expenditure (PFCE) at 7.1% and Exports at 12%, constant prices during Q1 FY 2026-27, happened despite the global uncertainties.
The double digit growth in GFCF coming from both high private and government investment indicate required addition to much needed physical capacity to catapult GDP in coming quarters, said Dr. Ranjeet Mehta, CEO & SG, PHDCCI.