India’s GDP Growth Hits 7.7% In FY26; Q4 Growth At 7.8%: Govt

New Delhi, Jun 6 (KNN) India's economy grew at 7.7 per cent in FY2025–26, up from 7.1 per cent in FY2024–25 and marginally above the government's own earlier estimate of 7.6 per cent, according to provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. 

The figures are based on a revised national accounts series with base year 2022–23, released by MoSPI in February 2026.

Full-Year Highlights

Real gross domestic product (GDP)  at constant prices is estimated at Rs 323.12 lakh crore in FY26, up from Rs 299.89 lakh crore in FY25. Nominal GDP grew 8.9 per cent to Rs 346.36 lakh crore, though this was slower than the 9.7 per cent nominal growth recorded in FY25.

On the expenditure side, private final consumption expenditure (PFCE) grew 7.7 per cent in FY26, up from 5.8 per cent the previous year, while gross fixed capital formation (GFCF) — a proxy for investment — accelerated to 8.2 per cent from 6.2 per cent, signalling stronger investment momentum.

On the sectoral side, manufacturing grew 10.7 per cent in FY26 against 9.3 per cent in FY25, and services expanded 9.3 per cent against 7.9 per cent. Agriculture, however, eased to 3 per cent from 4.2 per cent.

Q4 FY26 Performance

The fourth quarter delivered broad-based growth across sectors. Trade, hotels, transport, communication, and storage-related services led with expansion of 12.5 per cent year-on-year, followed by financial, real estate, and professional services at 10.4 per cent. 

Construction grew 8.4 per cent and manufacturing 7.3 per cent — though the latter marked a sharp deceleration from 12.8 per cent in Q3, weighing on the sequential quarter-on-quarter reading.

Real gross value added (GVA) for Q4 grew 7.9 per cent to Rs 80.18 lakh crore, while nominal GVA rose 9.9 per cent — the strongest nominal GVA growth of the fiscal year.

(KNN Bureau)