India's FY26-27 Q1 Growth Hits 7.8% Despite External Pressures

India recorded a 7.8% expansion in the first quarter of fiscal year 2026‑27, according to statements from Finance Minister Nirmala Sitharaman at the G20 finance ministers’ summit. The growth figure is notable because it was achieved amid a backdrop of mounting global uncertainties, including fluctuating energy prices and supply‑chain disruptions.

Sitharaman explained that the performance was not confined to a single sector; manufacturing grew at 9.2%, while financial services and professional services surged by 12.1%. The broad-based expansion underscores the economy’s depth and versatility.

She also pointed out that India’s foreign exchange reserves hover around $700 billion, a level she described as “far from ordinary.” These reserves, together with substantial foreign deposits and overseas investments by Indians, reinforce confidence in the nation’s financial system.

The minister concluded that the sustained growth rate offers reassurance that the hard work of Indian citizens and businesses is bearing fruit, even as the world grapples with economic turbulence.