Industrial Output and Export Gains Boost India’s First‑Quarter GDP

India’s economy grew by 7.8% in real terms during Q1 of FY2026‑27, outpacing the 6.9% growth of the same quarter a year before. Industry Chambers pointed to a combination of strong industrial production, rising private investment and a surge in export activity as the main drivers. Public capital spending, accelerated digitalisation and a rebound in service exports reinforced the growth trajectory, while the financial sector’s balance sheets showed marked improvement. Real‑price GDP is estimated at ₹81.36 lakh crore, up from ₹75.46 lakh crore in the prior year’s quarter. The cement production index rose 8.9%, the IIP for infrastructure goods increased 7.2%, and the IIP for electricity climbed 9.3%. Registrations of passenger vehicles grew 13.9% and freight vehicles surged 20.1%, indicating robust demand for transport assets. Exports of goods and services expanded 25.8% on a yearly basis, with transport‑related goods exports jumping 52.2%. The services sector contributed a 10% real‑terms increase, led by finance, real estate, IT and professional services, which together posted a 12.1% rise. Economists note that the strong industrial and export performance underpins a cyclical upswing that is also evident in corporate earnings and other high‑frequency indicators.