New Delhi: India’s real GDP growth of 7.8 per cent in the first quarter of FY 2026-27 reflects the resilience of the economy, with strong consumption, investment and government capital expenditure supporting the momentum, experts said on Monday.
Ranjeet Mehta, CEO and Secretary General, PHD Chamber of Commerce and Industry (PHDCCI), said the Q1 growth was a strong reflection of the resilience of the Indian economy and described the broad-based expansion as encouraging.
“India’s GDP growth in the first quarter of 2026-27 is a strong reflection of the resilience of the Indian economy. The growth has been broad-based, including 11.9 per cent gross capital formation. It’s really, really very encouraging,” Mehta said.
The stronger-than-expected growth also surprised economists and analysts, with CareEdge Ratings pointing to a pickup in investment and accelerated government capital expenditure as key drivers.
Pankaj Sharma, Business Head – North (Corporate and Infrastructure), CareEdge Ratings, said the 7.8 per cent growth came as a surprise, with investment picking up significantly.
He said the government had front-loaded capital expenditure during the first quarter.
CareEdge Ratings Chief Economist Rajani Sinha said the GDP figure was a “big positive surprise”, noting that the ratings agency had expected growth of around 7.3 per cent in the first quarter.
She said high-frequency indicators had already suggested that the economy was showing strong resilience, but the actual growth figure exceeded expectations.
According to Sinha, a combination of measures and favourable economic conditions helped strengthen consumption growth. Income-tax rationalisation, GST rationalisation and relatively low inflation over the past year supported household consumption, while a strong focus on capital expenditure by the Centre and states helped drive investment growth.
Sinha also pointed to a wider set of economic indicators that indicate sustained momentum in manufacturing. Auto sales, core sector growth and the Index of Industrial Production (IIP), among other indicators, have shown strength, she said.
The manufacturing sector’s performance in the GDP data also reflected this broader improvement, reinforcing the view that the latest growth figure was supported by multiple components of the economy rather than being driven by a single sector.
(IANS)
