India’s GDP grows 7.8% in Q4, full-year growth reaches 7.7% in FY26

India’s economy expanded by 7.8% in the January–March quarter of FY26, helping lift full-year real GDP growth to 7.7%, according to provisional estimates released by the Ministry of Statistics and Programme Implementation. The growth rate exceeded market expectations and marked an improvement from the previous financial year despite global uncertainty, geopolitical tensions and concerns over energy prices.

Official data showed that real Gross Domestic Product, measured at constant 2022–23 prices, increased to ₹323.12 lakh crore in FY26 from ₹299.89 lakh crore in FY25. Nominal GDP, measured at current prices, rose by 8.9% to ₹346.36 lakh crore from ₹318.07 lakh crore in the previous year.

Gross Value Added, which measures economic activity across sectors excluding taxes and subsidies, grew by 7.9% during FY26 compared with 7.3% a year earlier. Real GVA reached ₹294.91 lakh crore, while nominal GVA increased by 9.1% to ₹314.87 lakh crore.

Quarterly estimates indicated sustained economic activity during the final quarter of the financial year. Real GDP for the January–March period was estimated at ₹87.77 lakh crore, compared with ₹81.40 lakh crore in the corresponding quarter of the previous year. Nominal GDP during the quarter rose by 9.1% to ₹94.65 lakh crore, while real GVA and nominal GVA grew by 7.9% and 9.9%, respectively.

The data reflected growth across multiple sectors of the economy. Commercial vehicle sales increased by 12.6% during the year, exports of goods and services rose by 9.3%, and foodgrain production expanded by 5.3%. The estimates were compiled using indicators including industrial production, GST collections, corporate financial results, vehicle sales, freight movement, telecom usage, banking activity, tax collections and trade data.

The FY26 provisional estimates were prepared under the revised GDP series with 2022–23 as the base year. The figures incorporate actual data available for all four quarters of the financial year and revise earlier estimates released in February. The next set of GDP data, covering the April–June quarter of FY27, is scheduled to be released on August 31, 2026.