India Registers 7.7% GDP Growth for FY26, Q4 Growth Reaches 7.8%

Indian Economy Records 7.7 Percent Growth in FY26

The Indian economy experienced a growth of 7.7 percent in the fiscal year 2026 (FY26), surpassing the 7.6 percent projection in the second advance estimates. This information was made available through official data released by the statistics ministry on June 5.

In contrast, the real GDP growth in the previous fiscal year, FY25, was 7.1 percent. This indicates a steady growth trajectory for the Indian economy.

Quarterly Performance

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The growth rate in the fourth quarter (Q4) of FY26 was 7.8 percent, a decline from the 8 percent recorded in the third quarter (Q3) of the same fiscal year. This decline in quarter-on-quarter growth can be attributed to a significant drop in manufacturing growth, which fell from 12.8 percent in Q3 to 7.3 percent in Q4.

Future Projections

The Reserve Bank of India (RBI) has projected a growth rate of 6.6 percent for FY27, representing a decline of 110 basis points from the previous projection. This indicates a cautious outlook for the Indian economy in the coming fiscal year.

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Gross Value Added (GVA) Growth

The gross value added (GVA) growth in FY26 was 7.9 percent, mirroring the growth rate in Q4. The full year's GDP for FY26 was released with a new base year of 2022-23.

Nominal GDP Growth

The nominal GDP in FY26 grew by 8.9 percent, a decline from the 9.7 percent recorded in FY25.