India’s economy expanded by 7.7 percent in real terms during the financial year 2025-26, while growth accelerated to 7.8 percent in the January–March quarter, according to the Provisional Estimates of Gross Domestic Product (GDP) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The latest figures indicate an improvement over the 7.1 percent real GDP growth recorded in FY 2024-25, reflecting continued momentum across agriculture, manufacturing, construction, and services sectors despite global economic uncertainties.
GDP Crosses ₹323 Lakh Crore in Real Terms
According to the provisional estimates, India’s real GDP, measured at constant 2022-23 prices, reached ₹323.12 lakh crore in FY 2025-26, compared with ₹299.89 lakh crore in FY 2024-25.
At current prices, nominal GDP is estimated at ₹346.36 lakh crore, up from ₹318.07 lakh crore in the previous financial year, registering a growth rate of 8.9 percent.
Gross Value Added (GVA), which measures economic activity across sectors before taxes and subsidies, also recorded robust growth. Real GVA increased by 7.9 percent to ₹294.91 lakh crore during FY 2025-26, compared with 7.3 percent growth in the previous year.
Nominal GVA rose by 9.1 percent to ₹314.87 lakh crore.
Strong Finish to the Financial Year
The economy maintained its growth momentum in the final quarter of the fiscal year.
Real GDP in the fourth quarter (January-March 2026) stood at ₹87.77 lakh crore, compared to ₹81.40 lakh crore in the corresponding quarter of the previous year, registering a growth rate of 7.8 percent.
Nominal GDP during the quarter rose 9.1 percent to ₹94.65 lakh crore.
Similarly, real GVA grew 7.9 percent to ₹80.18 lakh crore, while nominal GVA expanded 9.9 percent to ₹86.46 lakh crore.
The Q4 performance was driven by strong activity in manufacturing, construction, services, transportation, and agriculture-related sectors.
Agriculture and Infrastructure Support Growth
Several key economic indicators showed healthy growth during FY 2025-26, contributing to overall economic expansion.
Foodgrain production recorded a growth of 5.3 percent during the year, supported by higher output across cereals, rice, and wheat. Cement production increased by 8.7 percent, while finished steel consumption rose by 8 percent, indicating strong infrastructure and construction activity.
Commercial vehicle sales grew 12.6 percent, while three-wheeler sales increased 12.8 percent, reflecting improved mobility and business activity.
Vehicle registrations also recorded significant gains, with household vehicle registrations rising 17.4 percent, passenger transport vehicle registrations increasing 14.7 percent, and goods transport vehicle registrations growing 18.3 percent.
Services and External Trade Remain Key Drivers
India’s services sector continued to play a major role in economic growth.
International air passenger and cargo traffic expanded by 9.7 percent, while domestic air traffic registered 3.7 percent growth.
Railway passenger traffic increased by 5.3 percent, highlighting continued recovery in travel and transportation demand.
On the external sector front, exports of goods and services grew 9.3 percent during FY 2025-26, while imports increased 11.1 percent. Imports of machinery and equipment surged 19.3 percent, indicating strong investment activity and industrial expansion.
Government Revenue Collections Improve
Government revenue indicators also reflected economic strength.
Customs duty collections increased 13.5 percent, while Union excise duty collections rose 13.9 percent during the fiscal year. Central Goods and Services Tax (CGST) collections recorded growth of 6.4 percent.
Fertiliser subsidies expanded significantly, rising 21.7 percent, reflecting continued support for the agricultural sector.
Data Based on New GDP Series
The latest estimates have been prepared under the revised GDP series with 2022-23 as the base year, introduced by MoSPI in February 2026.
The provisional estimates incorporate comprehensive data available up to the fourth quarter of FY 2025-26 and replace the Second Advance Estimates released earlier this year, which were based on information available only up to the third quarter.
MoSPI said that the estimates were compiled using a benchmark-indicator methodology and drew upon a wide range of economic indicators, including industrial production, GST collections, corporate financial results, agriculture output, transport statistics, trade data, government finances, and price indices.
The ministry also noted that future revisions will incorporate the updated Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series based on 2022-23 prices. Revised estimates are scheduled to be released alongside the first-quarter GDP figures for FY 2026-27 on August 31, 2026.
Outlook
The provisional estimates indicate that India’s economy maintained strong growth momentum throughout FY 2025-26, supported by robust domestic demand, infrastructure activity, resilient agriculture, and continued expansion in services.
With real GDP growth accelerating from 7.1 percent in FY 2024-25 to 7.7 percent in FY 2025-26 and fourth-quarter growth touching 7.8 percent, the latest data underscores the economy’s resilience amid global uncertainties and reinforces India’s position among the world’s fastest-growing major economies.
