India Records 7.7% GDP Growth in FY 2025-26, Q4 Surges to 7.8%
India's GDP grew by 7.7% in FY 2025-26 according to provisional estimates, with the fourth quarter registering a robust 7.8% growth—up from 7.1% in the previous fiscal year.
India's economy delivered a strong performance in the financial year 2025-26, recording a GDP growth rate of 7.7% according to provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on June 5, 2026. The fourth quarter (January–March 2026) was particularly impressive, registering a growth of 7.8%.
Sectoral Drivers
The robust performance was supported by strong domestic demand, resilient private consumption, and sustained investment activity. The services sector was the standout performer, growing at nearly 10% in the March quarter. Manufacturing and construction sectors also contributed positively, though manufacturing growth experienced a slight moderation compared to earlier quarters. Financial services, real estate, and professional services were additional bright spots.
Comparison and Outlook
The 7.7% growth in FY 2025-26 marked a notable acceleration from the 7.1% growth recorded in the previous financial year (2024-25). While government officials, including PM Modi and Defence Minister Rajnath Singh, highlighted these figures as proof of the economy's resilience amid global uncertainties, the Reserve Bank of India has adjusted its growth projection for FY 2026-27 downward to 6.6%, citing caution from geopolitical disruptions, elevated crude oil prices, and inflationary pressures.
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