India’s GDP growth for FY26 has been revised up to 7.6% after shifting the base year to 2022–23. | Representational Image
New Delhi: India’s GDP growth for FY2025–26 has been revised upward to 7.6 percent under a new calculation method released by the Ministry of Statistics and Programme Implementation (MoSPI). Earlier, growth was estimated at 7.4 percent using the old base year of 2011–12.
The new GDP series now uses 2022–23 as the base year. This is the ninth time the base year has been revised. The government said the change better reflects current economic activity.
Under the new estimates, real GDP is expected to reach Rs 322.58 lakh crore in FY26, compared with Rs 299.89 lakh crore in FY25. Growth in FY25 stood at 7.1 percent.
Strong Performance In October–December Quarter
GDP growth in the October–December quarter (Q3 FY26) was estimated at 7.8 percent, compared to 7.4 percent in the same period last year. Manufacturing and services sectors were the main drivers.
The second quarter growth was revised upward to 8.4 percent from 8.2 percent, while first quarter growth was lowered to 6.7 percent from 7.8 percent.
Nominal GDP growth for FY26 has been estimated at 8.6 percent.
Manufacturing, Services Lead Growth
MoSPI said the manufacturing sector has been a major contributor to strong economic performance for three years after rebasing. It recorded double-digit growth in 2023–24 and 2025–26.
The ‘Trade, Repair, Hotels, Transport, Communication and Services related to Broadcasting and Storage’ sector grew 10.1 percent in FY26 at constant prices.
On the demand side, both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) grew by more than 7 percent in FY26, showing steady consumer spending and investment.
New Data Sources And Improved Method
The new GDP series uses updated data sources such as GST data, Public Finance Management System (PFMS) and E-Vahan portal data. These sources are more detailed and available faster.
MoSPI also introduced double deflation for manufacturing and agriculture, replacing the earlier single deflation method. More detailed price indicators are now being used.
Household sector data will now be based on regular surveys like ASUSE and PLFS instead of proxy indicators.
Economist Aditi Nayar of ICRA said growth moderated slightly in Q3 but remained stronger than expected, with manufacturing and services showing solid performance.
