THEBUSINESSBTES BUREAU

NEW DELHI, FEBRUARY 27, 2026

India’s economy continues to demonstrate robust momentum, with real GDP projected to grow at 7.6 per cent in the current financial year 2025–26, according to the latest estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. Nominal GDP, which factors in inflation, is expected to expand by 8.6 per cent during the same period, reflecting sustained macroeconomic strength.

The strong performance has been underpinned by solid quarterly growth, with the economy expanding 8.4 per cent in the second quarter and 7.8 per cent in the third quarter. In real terms, the October–December quarter also recorded a 7.8 per cent increase, signalling steady demand and production across sectors.

India has maintained a consistent growth trajectory in recent years, posting real GDP growth of 7.2 per cent in 2023–24 and 7.1 per cent in 2024–25, while nominal GDP rose by 11.0 per cent and 9.7 per cent, respectively. The manufacturing sector has emerged as a central pillar of this expansion following the rebasing of national accounts, registering double-digit growth in both 2023–24 and 2025–26. The secondary and tertiary sectors further reinforced the growth momentum, each recording expansion of over 9 per cent in 2025–26.

MoSPI has introduced a new series of Annual and Quarterly National Accounts with 2022–23 as the base year, replacing the earlier 2011–12 benchmark. The revision aligns with international best practices and is designed to better capture structural changes in the economy by incorporating improved data sources, refined methodologies and broader coverage. The year 2022–23 was selected as it represents a relatively stable post-pandemic period with comprehensive sectoral data.

The ministry is also updating the base year for other key macroeconomic indicators, including the Consumer Price Index (CPI) and the Index of Industrial Production (IIP). The move comes after the International Monetary Fund assigned India a ‘C’ rating on national accounts methodology in late 2025, highlighting the need for more current base-year data

Official figures show the economy grew 8.7 per cent in 2021–22 and 7.2 per cent in 2022–23, underscoring its resilience. Over the past decade, India has climbed from the 11th-largest economy in 2013–14 to become the world’s fourth largest. Once grouped among the “Fragile Five” emerging markets, the country is now among the fastest-growing major economies, although raising per capita income remains a key policy priority.