Industry chambers hail broad‑based 7.8 pc GDP growth

New Delhi, Aug 31 (IANS) Industry chambers on Monday hailed India’s 7.8 per cent real GDP growth in Q1 FY27, calling the expansion broad‑based and driven by resilient domestic demand, strong industrial sector, rising investment and a buoyant services sector.

Public capital expenditure, digitalisation, services exports and improving financial-sector balance sheets were cited by experts as important supports.

The Real GDP grew by 7.8 per cent in Q1 FY 2026-27, against 6.9 per cent experienced during Q1 FY 2025-26.

Manoranjan Sharma, Chief Economist, Infomerics Ratings forecasted that India could sustain over 7 per cent growth over the medium term if policy reforms can crowd in private investment and raise manufacturing competitiveness.

Real GDP (Constant Prices) in the first quarter is estimated at Rs 81.36 lakh crore, against Rs 75.46 lakh crore in Q1 FY26.

GDP at Current Prices witnessed a growth of 10.3 per cent in Q1 FY27, against the growth of 8.1 per cent during Q1 FY26.

GDP at Current Prices in the first quarter is estimated at Rs 88.27 lakh crore, against Rs 80 lakh crore in Q1 FY26.

Real and Nominal GVA grew by 8.2 per cent and 11.5 per cent respectively in Q1 of FY27 over Q1 FY26.

Rajeev Juneja, President, PHDCCI called the growth “broad-based” as Cement Production Index grew 8.9 per cent while IIP Infrastructure or construction goods rose 7.2 per cent and IIP Electricity grew by 9.3 per cent.

Demand indicators such as passenger transport vehicle registration grew by 13.9 per cent, goods transport vehicles registration rose 20.1 per cent.

In the external sector, export of Goods and Services grew by 25.8 per cent, export of transport goods grew by 52.2 per cent, in Q1 2026-27 YoY.

India’s service sector has boosted the performance of the economy by registering growth of 10 per cent at constant prices, driven by the financial, real estate, IT and professional services sectors growing at 12.1 per cent.

“Strong GDP growth validates the cyclical upturn in the economy, as reflected in a broad range of high-frequency indicators, including corporate earnings,” said Madhavi Arora, Chief Economist, Emkay Global Financial Services.

Despite the Middle East crisis the volumes remain resilient, suggesting that firms have been able to pass through a meaningful portion of higher input costs, Arora said.

Apart from strong GDP and manufacturing growth, “10 per cent growth in the tertiary sector, and 7.7 per cent growth in the construction sector, is highly inspiring and indicates that the strong growth trajectory of above 7 per cent for the current quarter will continue in full fiscal year,” said Nirmal K Minda, President, ASSOCHAM.

–IANS

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