India’s Economy Shows Strong Growth
India’s economy is projected to grow by 7.7% in real terms for the fiscal year 2025–26, an increase from 7.1% in the previous year, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).
According to provisional estimates, the real Gross Domestic Product (GDP) is expected to reach ₹323.12 lakh crore (about $3.39 trillion) in FY26, compared to ₹299.89 lakh crore in FY25. Additionally, the nominal GDP is estimated to be ₹346.36 lakh crore, marking an impressive annual growth of 8.9% from ₹318.07 lakh crore the previous fiscal year.
These revised estimates came after incorporating data for the fourth quarter (January to March) of FY26, which provided a clearer picture since earlier forecasts were based on limited information available until the third quarter.
Delving deeper, MoSPI’s figures indicate that real Gross Value Added (GVA) is forecasted to increase by 7.9%, with the fourth quarter’s real GDP growing 7.8%, and GVA expanding by 7.9%.
During the final quarter of the fiscal year, real GDP is projected at ₹87.77 lakh crore, reflecting a rise of 7.8% from ₹81.40 lakh crore in the same quarter of FY25. The nominal GDP for this quarter is expected to reach ₹94.65 lakh crore, indicating a year-on-year growth of 9.1%.
On the production side, real GVA in FY26 is anticipated to reach ₹294.91 lakh crore, up from a 7.3% growth in the previous year. The nominal GVA for the year is projected at ₹314.87 lakh crore, with a growth of 9.1% compared to FY25.
In the fourth quarter, real GVA is expected to be ₹80.18 lakh crore, showing a year-on-year increase of 7.9%, while nominal GVA is set to grow by 9.9% to ₹86.46 lakh crore.
These estimates are part of the new GDP series, which uses 2022–23 as the base year, introduced by MoSPI in February 2026.
