India’s economy accelerated in FY26, with provisional government data showing real GDP growth of 7.7%, up from 7.1% in the previous year despite a backdrop of global uncertainty, geopolitical tensions and elevated energy prices.
Data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday also showed that the economy expanded 7.8% in the January-March quarter, indicating growth remained robust through the end of the financial year.
Real GDP, measured at constant 2022-23 prices, is estimated to have reached Rs 323.12 lakh crore in FY26, compared with Rs 299.89 lakh crore in FY25. Nominal GDP, which includes the impact of inflation, grew 8.9% to Rs 346.36 lakh crore from Rs 318.07 lakh crore a year earlier.
The provisional estimates are based on actual data available for all four quarters of FY26 and represent a revision from the Second Advance Estimates released in February, which were compiled using data only up to the December quarter.
The latest estimates suggest economic activity remained resilient through FY26, with both GDP and Gross Value Added (GVA) growth improving from the previous year.
Real GVA, which measures economic output excluding taxes and subsidies, grew 7.9% in FY26, compared with 7.3% in FY25.
At current prices, nominal GVA rose 9.1% to Rs 314.87 lakh crore from Rs 288.54 lakh crore a year earlier.
The data pointed to broad-based growth across the economy, with services continuing to account for the largest share of economic activity, while manufacturing, construction and other industrial sectors also contributed to the expansion.
According to the government, the estimates were compiled using a wide range of indicators, including industrial production, GST collections, corporate financial results, vehicle sales, freight movement, telecom usage, banking activity, tax collections and trade data.
The economy maintained strong momentum in the final quarter of FY26.
Real GDP in the January-March period stood at Rs 87.77 lakh crore, compared with Rs 81.40 lakh crore a year earlier, translating into growth of 7.8%.
Nominal GDP during the quarter increased 9.1% to Rs 94.65 lakh crore.
Real GVA grew 7.9% in the March quarter, while nominal GVA expanded 9.9%.
The latest numbers suggest that domestic demand remained resilient through the final months of the financial year, helping support growth despite a challenging global backdrop.
The FY26 provisional estimates are part of the new GDP series with 2022-23 as the base year, which was introduced by the government in February this year.
MoSPI said the estimates incorporate updated information received for the fourth quarter and revised data for earlier quarters.
The ministry also said future GDP releases will incorporate revised Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series based on the 2022-23 base year.
The next set of quarterly GDP numbers, covering the April-June quarter of FY27, is scheduled to be released on August 31, 2026.