New Delhi: India’s economy recorded a strong growth of 7.7% in the financial year 2025-26 (FY26), outperforming the previous year despite global uncertainty, geopolitical tensions and rising energy prices, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI).
The latest figures indicate an improvement from the 7.1% growth recorded in FY25, reflecting the resilience of the Indian economy amid a challenging international environment. The data also showed that economic momentum remained strong in the final quarter of the year, further supporting overall growth.
Robust performance drives annual growth
As per the provisional estimates, India’s real Gross Domestic Product (GDP), measured at constant 2022-23 prices, rose to Rs 323.12 lakh crore in FY26, compared to Rs 299.89 lakh crore in FY25.
Nominal GDP, which accounts for inflation, grew 8.9% to Rs 346.36 lakh crore from Rs 318.07 lakh crore a year earlier. The data reflects steady expansion across key sectors of the economy.
The estimates are based on actual data from all four quarters of the financial year and represent a revision of the Second Advance Estimates released earlier in February, which had relied on partial data.
Broad-based growth across sectors
The data highlights widespread growth across sectors, indicating balanced economic expansion. Real Gross Value Added (GVA), which excludes taxes and subsidies, grew 7.9% in FY26, up from 7.3% in FY25.
At current prices, nominal GVA rose 9.1% to Rs 314.87 lakh crore from Rs 288.54 lakh crore in the previous year.
The services sector continued to dominate economic activity, while manufacturing, construction and other industrial segments also contributed significantly to growth. This broad-based expansion underscores the strength of domestic demand and investment activity.
MoSPI stated that the estimates were compiled using a range of high-frequency indicators, including industrial production, GST collections, corporate earnings, vehicle sales, freight movement, telecom usage, banking transactions, tax revenues and trade data.
Strong momentum in March quarter
India’s economy maintained a solid growth trajectory in the January-March quarter (Q4 FY26). Real GDP during the quarter stood at Rs 87.77 lakh crore, compared to Rs 81.40 lakh crore in the corresponding period of FY25, registering a growth of 7.8%.
Nominal GDP in Q4 rose 9.1% to Rs 94.65 lakh crore.
Real GVA grew 7.9% during the quarter, while nominal GVA expanded 9.9%, indicating continued strength in economic activity.
The robust quarterly performance suggests that domestic demand remained resilient, helping the economy withstand global headwinds, including geopolitical tensions and concerns over international trade disruptions.
Updated GDP series improves accuracy
The FY26 estimates are based on the revised GDP series with 2022-23 as the base year, introduced earlier this year. The updated series incorporates more comprehensive and improved data sources, enhancing the accuracy of national accounts.
MoSPI noted that the latest estimates include updated information for the fourth quarter and revised data for earlier quarters.
The ministry also indicated that future GDP releases will incorporate revised Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series, also aligned to the 2022-23 base year.
Outlook remains positive
The strong FY26 performance reinforces India’s position as one of the fastest-growing major economies in the world. Despite global uncertainties, the country’s economic fundamentals remain robust, supported by steady domestic consumption, infrastructure development and policy measures.
The next set of GDP data, covering the April-June quarter of FY27, is scheduled to be released on August 31, 2026.
Conclusion
India’s 7.7% growth in FY26 highlights the resilience and strength of its economy in the face of global challenges. With sustained domestic demand and ongoing reforms, the outlook for continued economic expansion remains positive, although external risks will need to be closely monitored.