New Delhi: India’s economy grew faster than expected in FY26, with real GDP expanding by 7.7%. According to data released by the Ministry of Statistics
and Programme Implementation (MoSPI) on June 5, the growth rate was slightly higher than the government’s earlier estimate of 7.6%.
The fresh data highlights a notable acceleration from the 7.1% real GDP rate recorded during the previous fiscal year (FY25).
Growth slows slightly in fourth quarter
Despite strong growth for the full year, the economy slowed slightly in the January–March quarter. GDP grew 7.8% in the fourth quarter, compared with 8.0% in the previous quarter. Economists said the slowdown was mainly due to weaker manufacturing growth, which eased to 7.3% in Q4 from 12.8% in Q3.
Looking ahead to the 2026-27 fiscal calendar (FY27), the Reserve Bank of India (RBI) forecasts a growth moderation. The central bank anticipates the growth rate will drop by 110 basis points, leveling out at 6.6%.
GDP data updated with new base year
The ministry’s latest data was calculated using a new base year of 2022-23. Based on these revised calculations, Gross Value Added (GVA) growth remained at 7.9% for both FY26 and the January–March quarter.
Although the economy grew in real terms, nominal GDP growth, which measures economic output at current prices, slowed slightly. It grew by 8.9% in FY26, compared with 9.7% in FY25.
