India's FY2025‑26 GDP expands 7.7% in provisional data

India's economy grew at a faster pace in the fiscal year ending March 2026, according to provisional government data released on Friday. The economy expanded by 7.7% for the full year, accelerating from a revised 7.1% growth in the previous fiscal year.

Growth remained robust in the final quarter, with the economy growing 7.8% year-on-year in the January-March period. The data, released by the Ministry of Statistics and Programme Implementation, is based on a newly introduced GDP series with 2022-23 as the base year, designed to better reflect post-pandemic economic patterns.

For the full 2025-26 fiscal year, real GDP is estimated to have reached 323.12 lakh crore rupees, up from 299.89 lakh crore rupees the previous year. In nominal terms, which includes the effect of inflation, GDP grew 8.9% to 346.36 lakh crore rupees.

A key measure of underlying economic activity, Gross Value Added, grew 7.9% in real terms for the year. The expansion was broad-based, with the services sector emerging as the largest contributor. Manufacturing, construction, and several other industries also posted strong growth.

On the demand side, both household consumption and investment activity remained...