India’s FY26 growth hits 7.7%

India's economy demonstrated robust growth in the fiscal year 2025-26, achieving a 7.7% GDP expansion for the full year and a 7.8% increase in the quarter ending March 2026. This performance places the nation on a solid foundation to navigate current external challenges, particularly those stemming from the conflict in West Asia. Prime Minister Narendra Modi celebrated the figures, stating on X that the growth reflects the economy's inherent strength, the success of reforms, and the collective effort of 1.4 billion Indians. He pledged continued efforts to improve the ease of living and doing business, and to create more opportunities for the youth. However, the outlook for the upcoming year, 2026-27, is more cautious. The Reserve Bank of India (RBI) projects a GDP growth of 6.6%, citing downside risks. The central bank is shifting its focus towards managing the balance of payments and bracing for a potentially weaker monsoon due to El Nino conditions, while also implementing measures to attract foreign capital inflows. Data from the National Statistics Office (NSO) indicated that Gross Value Added (GVA) grew by 7.9% in 2025-26. While quarterly growth showed some deceleration through the year, from 8.4% in the September 2025 quarter to 7.8% in the March 2026 quarter, both consumption and investment were key drivers of the annual surge. Private Final Consumption Expenditure (PFCE) grew by 7.7%, and Gross Fixed Capital Formation (GFCF) rose by 8.2%. Sectors like manufacturing and services also posted double-digit growth.

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India’s growth momentum remains strong! GDP growth rate of 7.7% in FY 2025-26 and 7.8% in Q4 of FY 2025-26 reflect the inherent strength of our economy, the success of reforms and the hard work of 140 crore Indians. We shall leave no stone unturned to further ‘Ease of Living,’ ‘Ease of Doing Business’ and increase opportunities for our youth.