The Indian economy grew at 7.8 percent in the third quarter of FY26 compared to 8.4 percent in the previous quarter, according to the new GDP series with an updated base year of 2022-23. The growth rate for Q3FY25 was 7.4 percent.
The economy is likely to grow at 7.6 percent in FY26 as per the second advanced estimates compared to 7.1 percent in FY25 according to government data also released on Friday. The economy is likely to register a nominal growth rate, which output not adjusted for inflation, of 8.6 percent. The economic survey's growth outlook for FY27 has been revised upwards to 7-7.4 percent from 6.8-7.2 percent earlier, Chief Economic Advisor V Ananth Nageswaran said during a press conference on the release of the new GDP figures.
The gross value added in the economy increased by 7.8 percent in Q3FY26 compared to 8.6 percent in the previous quarter.
The Ministry of Statistics and Programme Implementation (MOSPI) has just released its most comprehensive overhaul of national accounts in over a decade, shifting the base year for calculating Gross Domestic Product from 2011-12 to 2022-23, in a move aimed at better capturing the country’s transformed economic landscape.
While the tertiary recorded a 9 percent growth in FY26 according to the second advanced estimates, manufacturing did so at 11.5 percent, and agriculture at 2.4 percent.
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India’s new GDP 2022-23 series integrates several high frequency datasets, including GST and Vahan, and surveys like HCES and ASUSE to capture a more granular picture of the post-pandemic economy.
The revision for the first time uses three surveys—household consumption expenditure surveys (HCES), the survey on unincorporated sector enterprises (ASUSE) and the labour force survey (PLFS)—to produce expenditure-side estimates of India’s economic growth.
The new series also replaces broad-based deflators with sector-specific indices and updated price data to calculate economic output. The transition incorporates a new CPI (Base: 2024) and Unit Value Indices (Base: 2022-23), alongside an updated WPI (Base: 2022-23) or Producer Price Index where available.
