India's GDP Growth Estimated at 7.6 Percent in FY26

According to new GDP estimates released on February 27, India's economy is likely to have grown 7.6 percent in the fiscal year (FY26), a 0.2 percentage point increase from the previously estimated 7.4 percent expansion under the earlier 2011-12 base series.

The updated national accounts series, which adopts 2022-23 as the new base year, reflects methodological improvements and wider economic coverage. This revision places growth higher than the previous estimates, with FY25 growth revised to 7.1 percent from 6.5 percent, and FY24 growth standing at 7.2 percent compared to 9.2 percent in the earlier series.

GDP Growth by Quarter

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• The economy expanded 7.8 percent in the third quarter.
• Quarterly data indicate steady momentum through the fiscal year, with growth rates as follows:
  • First quarter: 6.7 percent (revised from 7.8 percent)
  • Second quarter: 8.4 percent (revised from 8.2 percent)
  • Third quarter: 7.8 percent

Methodological Improvements

The revised GDP framework incorporates a broader database of companies, significantly expanding the universe of covered business units. The methodology also adopts improved estimation techniques, including double deflation and refined extrapolation methods, aimed at better capturing real economic activity across sectors.

The rebasing exercise is expected to improve comparability with current economic structures by reflecting changes in consumption patterns, production dynamics, and the growing role of formal sector enterprises in India's economy.

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