India's economy expanded 7.4 per cent in the April-June quarter of FY27, the National Statistical Office announced, maintaining its position as the world's fastest-growing major economy and outpacing the 7.1 per cent growth recorded in the comparable period of FY26.

The growth acceleration was led by manufacturing, which expanded 9.2 per cent as capital goods production and infrastructure-linked industries including cement, steel, and commercial vehicles reported strong volumes. Construction grew 8.7 per cent, reflecting the sustained execution of the National Infrastructure Pipeline projects.

Agriculture grew a modest 3.1 per cent, lower than the pre-monsoon forecast of 4.3 per cent, as drought conditions in parts of Maharashtra and Karnataka reduced kharif crop outputs in the survey period. The full impact of the 2026 monsoon season on agricultural performance will appear in Q2 data.

Private consumption, long the weakest component of India's post-pandemic growth, showed signs of broadening: urban household spending grew 8.1 per cent and rural spending 6.4 per cent, the first time rural spending growth has exceeded 6 per cent in three consecutive quarters.