India Remains Among Fastest-Growing Major Economies with 7.7% Growth

India’s economy continued its strong growth trajectory in the financial year 2025-26, with real Gross Domestic Product (GDP) estimated to expand by 7.7 per cent, compared to 7.1 per cent growth recorded in 2024-25.

The estimates were released by the Ministry of Statistics and Programme Implementation as part of the Provisional Annual GDP Estimates for FY 2025-26 and quarterly estimates for the January-March period.

According to the data, India’s real GDP is estimated to reach ₹323 lakh crore in FY 2025-26, up from the first revised estimate of ₹299 lakh crore in 2024-25.

Key Growth Drivers

The economy’s expansion was supported by broad-based growth across multiple sectors:

• Primary Sector: Grew by 3.2 per cent, largely driven by strong performance in agriculture and fisheries.
• Manufacturing Sector: Registered double-digit growth, reflecting improved industrial activity and domestic demand.

• Trade, Hotels, Transport, and Communication: Continued to show strong momentum, benefiting from increased consumption and economic activity.
• Real Estate and Broadcasting-related Services: Also recorded double-digit growth, contributing significantly to overall GDP expansion.

Strong Fourth Quarter Performance

The economy accelerated further in the fourth quarter (January-March 2026), with real GDP growing by 7.8 per cent.

Real GDP during the quarter stood at ₹87.77 lakh crore, compared to ₹81.40 lakh crore in the corresponding quarter of FY 2024-25.

The growth during the quarter was primarily led by the secondary sector (manufacturing, construction, utilities) and the tertiary sector (services), which emerged as the key contributors to both Gross Value Added (GVA) and GDP growth.

Positive Outlook

The latest figures reinforce India’s position as one of the fastest-growing major economies in the world. Economists note that strong domestic demand, infrastructure investments, manufacturing expansion, and resilience in the services sector have supported growth despite global economic uncertainties.

The data also comes amid heightened geopolitical tensions and volatility in global energy markets, highlighting the relative resilience of the Indian economy.