India's national accounts are now compiled on a new series with base year 2022-23, which replaced the earlier 2011-12 base. A base year revision updates the price and weight structure of the economy so that the composition of output reflects current consumption and production patterns rather than a decade-old one. Real (constant-price) figures for Q1 FY27 are therefore measured at 2022-23 prices, while nominal (current-price) figures carry the effect of price change - which is why nominal growth of 10.3% ran well ahead of real growth of 7.8%.

Quarterly GDP is the most closely watched number in Indian macroeconomics, and this print matters for three reasons. First, growth of 7.8% against an RBI projection of 7% means the central bank was under-forecasting momentum, which shapes how much room it has on interest rates. Second, the composition is unusually investment-led: Gross Fixed Capital Formation grew 20.4%, roughly twice the pace of private consumption, which suggests capacity is being built rather than merely used up. Third, the gap between services growth of 10% and agricultural growth of 3.6% is a reminder that headline growth can conceal a weak rural economy, an angle UPSC frequently asks about in GS Paper 3.