India’s economy grew by 7.7% in FY 2025-26, according to the provisional estimates released by the Ministry of Statistics. This is higher than the 7.1% growth recorded in FY25. Nominal GDP grew 8.9%, reaching Rs 346.36 lakh crore, compared with Rs 318.07 lakh crore a year earlier.
At constant prices, India’s GDP rose to Rs 323.12 lakh crore from Rs 299.89 lakh crore in FY25. Real Gross Value Added (GVA) increased 7.9%, while nominal GVA grew 9.1% during the year.
The secondary sector was a major growth driver, expanding 8.8%, while the tertiary (services) sector grew 9.3%. The primary sector recorded a 3.2% growth rate, supported mainly by agriculture and fisheries.
Among industries, manufacturing, trade, repair, hotels, transport, communication, storage and broadcasting services, and financial, real estate and professional services posted double digit growth at both constant and current prices.
On the demand side, Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) both grew by more than 7.5% during FY26, indicating strong consumer spending and investment activity.
For the January-March 2026 quarter (Q4 FY26), India’s real GDP grew 7.8%, while nominal GDP rose 9.1%. Real GDP for the quarter stood at Rs 87.77 lakh crore, up from Rs 81.40 lakh crore in the same period last year.
Real GVA in Q4 increased 7.9% to Rs 80.18 lakh crore, while nominal GVA rose 9.9% to Rs 86.46 lakh crore. Investment remained strong, with GFCF growing 10.8%, while PFCE expanded 7.1% during the quarter, highlighting continued strength in capital expenditure and consumer demand.
