India's Manufacturing Sector Outpaces Headline GDP Growth in Q1 FY27

Key Highlights:

• India's economy grew 7.8% year-on-year in the April-June quarter of FY27, beating the RBI's 7% forecast.
• The manufacturing sector expanded 9.2%, up from 8.3% a year earlier, outpacing the headline GDP print.
• Services sector activity expanded 10% during the quarter, alongside the manufacturing pickup.
• Gross Value Added, which strips out tax and subsidies, rose 8.2%, reflecting broad-based activity.
• Gross Fixed Capital Formation grew 11.9% year-on-year, with private investment reported at approximately 12% compared with 5.8% a year earlier.

Key Observations:

• Manufacturing and investment activity recorded growth during the quarter, alongside consumer demand.
• The print came in above the RBI's 7% forecast and a Reuters poll estimate of 7.1%.
• Sustained manufacturing momentum supports India's broader push toward domestic production and value addition.

Source: Reuters, 31 August 2026.

*Portfolio allocation as on 30th June 2026. Allocations are subject to change based on portfolio positioning, investment decisions, and market conditions.

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