New Delhi: India’s economy recorded a 7.7 per cent growth in 2025-26, accelerating from 7.1 per cent in the previous year, according to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The economy expanded 7.8 per cent in the last quarter of FY’26. This was higher than the 7.0 per cent growth recorded in the corresponding quarter of the previous fiscal, as reported by News18.
Real Gross Domestic Product (GDP), adjusted for inflation, rose to Rs 323.12 lakh crore in FY26 from Rs 299.89 lakh crore in FY25, the data showed.
Real GDP for the fourth quarter was estimated at Rs 87.77 lakh crore compared with Rs 81.40 lakh crore a year ago.
Nominal GDP, which includes the impact of inflation, increased 8.9 per cent to Rs 346.36 lakh crore in FY26 from Rs 318.07 lakh crore in FY25. For the March 2026 quarter, nominal GDP rose 9.1 per cent to Rs 94.65 lakh crore.
The data reveals that Gross Value Added (GVA), a key measure of economic activity that excludes taxes and subsidies, grew 7.9 per cent in FY26 as compared to 7.3 per cent in FY25. Real GVA was estimated at Rs 294.91 lakh crore du
ring FY26 against Rs 273.36 lakh crore in the previous year.
In Q4FY26, real GVA grew 7.9 per cent to Rs 80.18 lakh crore, while nominal GVA rose 9.9 per cent to Rs 86.46 lakh crore.
Sector-wise analysis reveals that the services sector remained the biggest growth driver in the March quarter, expanding 9.9 per cent year-on-year, while the secondary sector, which includes manufacturing, construction and utilities, grew 7.4 per cent. Growth in the primary sector moderated to 3.8 per cent.
Trade, Hotels, Transport, Communication and Services related to Broadcasting recorded the fastest growth of 12.5 per cent in Q4FY26, among individual sectors. The figure was 6.3 per cent a year earlier.
Financial, Real Estate, Ownership of Dwelling, IT and Professional Services grew 10.4 per cent, while Public Administration, Defence and Other Services expanded 5.8 per cent.
Manufacturing grew 7.3 per cent, Construction expanded 8.4 per cent and Electricity, Gas, Water Supply and Other Utility Services rose 4.1 per cent, within the industrial segment.
Agriculture, Livestock, Forestry and Fishing registered growth of 3.6 per cent, while Mining and Quarrying grew 5.4 per cent during the quarter.
The FY26 growth rate of 7.7 per cent marks an improvement from the 7.1 per cent expansion recorded in FY25. Similarly, GVA growth accelerated to 7.9 per cent from 7.3 per cent in the previous fiscal, indicating stronger underlying economic activity.
The provisional estimates are based on actual data available up to the fourth quarter and replace the Second Advance Estimates released in February 2026, which were compiled using information available only up to the third quarter.
The next official GDP release, covering the April-June quarter of FY27, is scheduled for August 31, 2026.