NEW DELHI. India’s economy expanded by 7.7 per cent in real terms during the financial year 2025-26. The Ministry of Statistics and Programme Implementation released these Provisional Estimates of Gross Domestic Product today. This latest performance indicates a clear improvement over the 7.1 per cent India’s GDP growth recorded in FY 2024-25. The data reflects sustained momentum across agriculture, manufacturing, construction, and services despite global economic uncertainties. Furthermore, economic expansion accelerated to 7.8 per cent during the final January–March quarter of the fiscal year. This acceleration underscores the deep resilience of the domestic market amidst shifting international dynamics.
India’s GDP Reaches New Milestones
According to the provisional estimates, the absolute size of the domestic market scaled up significantly. India’s real GDP reached ₹323.12 lakh crore in FY 2025-26 compared with ₹299.89 lakh crore previously. These specific calculations utilize constant 2022-23 prices to eliminate the distortionary effects of inflation. At current prices, nominal GDP is estimated at ₹346.36 lakh crore, up from ₹318.07 lakh crore last year. This change represents a nominal growth rate of 8.9 per cent for the full fiscal period. Gross Value Added, which tracks direct supply-side economic activity across individual industrial sectors, also recorded robust growth. Real GVA increased by 7.9 per cent to reach ₹294.91 lakh crore during the year.
Strong Final Quarter and Multi-Sectoral Performance
The economy maintained its upward trajectory during the final three months of the financial period. Real GDP in the fourth quarter stood at ₹87.77 lakh crore against ₹81.40 lakh crore previously. This Q4 performance registered an annualized growth rate of 7.8 per cent for the quarter. Nominal GDP during the exact same three-month period rose by 9.1 per cent to ₹94.65 lakh crore. Real GVA grew by 7.9 per cent to ₹80.18 lakh crore, driven by robust manufacturing and construction. Transportation and agriculture-related sectors also contributed heavily to the positive fourth-quarter economic finish. This balanced multi-sectoral contribution helps lock in India’s GDP growth objectives going forward.
Infrastructure Indicators and External Trade Drivers
Key physical indicators showed healthy gains, pointing to robust core infrastructure and building activity. Foodgrain production recorded a growth of 5.3 per cent, supported by higher outputs of wheat and rice. Cement production increased by 8.7 per cent, while finished steel consumption rose by 8.0 per cent. Commercial vehicle sales grew 12.6 per cent, reflecting upgraded cargo mobility and logistics demand. On the external front, exports grew 9.3 per cent, while total imports increased by 11.1 per cent. Machinery and equipment imports surged by 19.3 per cent, signaling strong domestic industrial expansion. These indicators collectively mirror the underlying health supporting India’s GDP growth.
Methodological Revisions and Government Revenue Strengths
Government revenue collections mirrored the broader economic strength through increased tax and duty yields. Customs duty collections increased 13.5 per cent, while Union excise duty collections rose 13.9 per cent. Central Goods and Services Tax collections recorded a steady growth of 6.4 per cent. Meanwhile, fertiliser subsidies expanded by 21.7 per cent to sustain crucial agricultural sector operations. These latest estimates leverage a revised GDP series featuring 2022-23 as the mandatory baseline year. MoSPI compiled the data using a benchmark-indicator methodology drawing from diverse corporate and public finance records. Future updates will incorporate updated industrial indices to refine India’s GDP growth figures by August.
National Income & Key Economic Indicators (FY 2025-26)
| Macroeconomic Metric / Sector Parameter | Absolute Value / Growth Rate | Comparison with FY 2024-25 |
| Real GDP Growth (Full Year) | 7.7 per cent expansion. | Up from 7.1 per cent real growth. |
| Primary Metric | India’s GDP growth. | Accelerating momentum. |
| Total Real GDP Value | ₹323.12 Lakh Crore. | ₹299.89 Lakh Crore in previous year. |
| Fourth Quarter (Q4) Growth | 7.8 per cent in real terms. | Driven by manufacturing and service lines. |
| Nominal GDP Value | ₹346.36 Lakh Crore (Up 8.9%). | ₹318.07 Lakh Crore in previous year. |
| Real Gross Value Added (GVA) | ₹294.91 Lakh Crore (Up 7.9%). | Reflects strong supply-side industrial health. |
| Core Infrastructure Metrics | Cement: +8.7% / Steel: +8.0%. | Indicates intensive domestic construction. |
| Machinery Import Surge | Expanded by 19.3 per cent. | Highlights rising private sector investments. |
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