India’s GDP grew 7.7% in FY26, up from 7.1% in the previous year.
Growth in the March quarter stood at 7.8%, slightly lower than the revised 8% in Q3.
RBI and economists warn of slower growth ahead due to global tensions and domestic risks.
India’s economy expanded 7.7% in FY2025–26 compared with 7.1% in FY2024–25, according to provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI).
Growth in the January–March quarter of FY26 stood at 7.8%, compared with a revised 8% in the October–December quarter. The government also revised earlier quarterly estimates for FY26 under the updated GDP series.
1 June 2026
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The data is based on a revised national accounts framework with 2022–23 as the new base year. The update includes changes to the inflation basket and revised data sources, aimed at better capturing changes in consumption patterns and economic activity.
The latest GDP data comes after revisions to earlier quarterly figures, reflecting updates in the national accounts series and broader data adjustments across FY26.
Quarterly Performance and Revised Estimates
Gross value added (GVA), which measures sector-wise economic activity, rose 7.9% in real terms in Q4 FY26. Nominal GDP for the quarter increased 9.1%.
For the full year, nominal GDP rose to ₹346.36 lakh crore in FY26 from ₹318.07 lakh crore in FY25, while real GDP increased to ₹323.12 lakh crore from ₹299.89 lakh crore in the same period.
Earlier quarterly estimates for FY26 were also revised marginally under the updated series, including changes to April–June and July–September figures.
RBI Outlook and Revised Projections
The latest GDP data comes hours after the Reserve Bank of India (RBI) revised its growth forecast for FY27 downward to 6.6% from 6.9%, citing global economic uncertainty and external risks in its monetary policy statement.
As per the central bank’s projections, growth for FY27 is expected at 6.6% in April–June 2026, 6.3% in July–September 2026, 6.5% in October–December 2026, and 6.8% in January–March 2027. Earlier, the RBI had estimated higher growth for each quarter at 6.8%, 6.7%, 7%, and 7.2% respectively.
Industry body ASSOCHAM said the GDP growth of 7.7% for FY26 is in line with its expectations. President Nirmal Kumar Minda said the economy’s performance reflects broad-based sectoral growth despite global headwinds.
He noted sector-wise expansion during the year, including agriculture growth of 3%, manufacturing at 10.7%, construction at 7.4%, and services at 9.3%.
Minda said “both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) have exhibited more than 7.5% growth rate in FY 2025–26”, highlighting sustained demand and investment activity.
He added that secondary and tertiary sectors were the key drivers of real and nominal GVA growth of 7.9% and 9.9% respectively in Q4 FY26.
ASSOCHAM expects economic growth to remain resilient in the current year as well, broadly in line with the RBI’s projection of 6.6% for FY27, he said.
