Why in the news
Output growth for April–June 2026 (Q1 FY27) came in at 7.8%, brisker than a year ago but softer than the January–March 2026 quarter.
Key facts
| Measure | Q1 FY27 |
|---|
| Nominal GDP, growth rate | 10.3% |
| Real GVA, growth rate | 8.2% |
| Real GDP, growth rate | 7.8% |
| Quarter | Real GDP growth |
|---|
| Q1 FY26 | 6.9% |
| Q4 FY26 | 8.6% |
| Q1 FY27 | 7.8% |
- GVA growth above GDP growth hints that subsidies grew faster than product taxes; the note ties this to the fertiliser subsidy overshoot.
Concepts to revise
- GDP: worth of final goods and services made inside a country over a quarter or year.
- GVA = output minus intermediate consumption; add product taxes and deduct product subsidies to reach GDP.
- NDP = GDP minus depreciation.
- Sectors: agriculture, industry, services; services hold the largest GVA share.
- Nominal GDP moves with output and prices; real GDP removes price effects and shows true growth.
Exam angle
- Q1 FY27: real GDP 7.8%, GVA 8.2%, nominal GDP 10.3%.
- GDP = GVA plus net product taxes.