India's real GDP growth clocks five-quarter high in Q1FY26, Government Final Consumption Expenditure bounces back

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) released the Quarterly Estimates of Gross Domestic Product (GDP) for the April-June Quarter (Q1) of Financial Year (FY) 2025-26 today. It noted that Real GDP has been estimated to grow by 7.8% in Q1 of FY 2025-26 over the growth rate of 6.5% during Q1 of FY 2024-25. Nominal GDP has witnessed a growth rate of 8.8% in Q1 of FY 2025-26. The latest quarterly print marked an improvement compared to 7.4% in March-25 quarter and is the best show by real GDP growth rate in five quarters.

Agriculture and Allied Sector has observed the Real GVA growth rate of 3.7%, as compared to the growth rate of 1.5% registered in Q1 of last financial year. Secondary Sectors, prominently Manufacturing (7.7%) and Construction (7.6%) Sector has registered above 7.5% growth rate at Constant Prices in this quarter. Mining & Quarrying (-3.1%) and Electricity, Gas, Water Supply and Other Utility Services Sector (0.5%) has seen moderated Real growth rate during Q1 of FY 2025-26. Tertiary Sector (9.3%) has recorded substantial growth rate at Constant Prices in Q1 of FY 2025-26, over the growth rate of 6.8% in Q1 of FY 2024-25.

Government Final Consumption Expenditure (GFCE) has bounced back, registering 9.7% growth rate in Nominal terms during Q1 of FY 2025-26, over the growth rate of 4.0% in Q1 of FY 2024-25. In real terms, it showed a growth of 7.4% compared to a contraction of 0.3% in same quarter of previous fiscal.
Real Private Final Consumption Expenditure (PFCE) has reported 7.0% growth rate during Q1 of FY 2025-26 as compared to the 8.3% growth rate in the corresponding period of previous financial year. Gross Fixed Capital Formation (GFCF) has recorded 7.8% growth rate at Constant Prices, improving over the growth rate of 6.7% in Q1 of FY 2024-25.

Real GDP or GDP at Constant Prices in Q1 of FY 2025-26 is estimated at Rs 47.89 lakh crore, against Rs 44.42 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.8%. Nominal GDP or GDP at Current Prices in Q1 of FY 2025-26 is estimated at Rs 86.05 lakh crore, against Rs 79.08 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8%. Real GVA in Q1 of FY 2025-26 is estimated at Rs 44.64 lakh crore, against Rs 41.47 lakh crore in Q1 of FY 2024-25, registering a growth rate of 7.6%. Nominal GVA in Q1 of FY 2025-26 is estimated at Rs 78.25 lakh crore, against Rs 71.95 lakh crore in Q1 of FY 2024-25, showing a growth rate of 8.8%.

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