India's new GDP series explained in 7 charts
India's new GDP series shows faster growth in FY26 and stronger private consumption
By Samreen Wani
Last Updated: Feb 28, 2026, 11:53 IST1 min
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India's GDP is estimated to grow at 7.6 percent in FY26, up from 7.1 percent in FY25 and 7.2 percent in FY24, according to the second advanced estimates under the new series.
GDP moderated in Q3FY26 to 7.8 percent compared to a growth of 8.4 percent in Q2FY26. Growth was 7.4 percent in Q3FY25.
Gross Value Added growth followed a similar trajectory, rising to 8.6 percent in Q2FY26 and easing to 7.8 percent in Q3FY26, mirroring the pattern in overall GDP. Madan Sabnavis, chief economist at Bank of Baroda says that the growth in GVA has been higher than GDP in last 2 years thus indicating "a negative carry on net indirect taxes." He added that "the wedge between real and nominal GDP growth rates has come down to just 1 percent in FY26 and will widen to 3 percent in FY27".
The secondary and tertiary sectors are each projected to grow above 9 percent in FY26, while the primary sector's growth is expected to slow to 2.6 percent from 4.9 percent in FY25. Sabnavis adds that the growth in manufacturing "means that the IIP new series will show higher numbers when the new index is out".
Private final consumption expenditure is set to grow faster at 7.7 percent in FY26, up from 5.8 percent in FY25, while government consumption and capital formation also see modest acceleration. Chief Economic Advisor V Ananth Nageswaran described nature of consumption as "resilient". He added that rural consumption has been strong and urban consumption is "recovering on the back" of the direct and indirect tax relief measures enacted in 2025.
Compared to the first advanced estimates under the old series, the new series shows a lower share of private consumption (56.7 percent vs 61.5 percent) and a higher share for gross fixed capital formation and government consumption.
Under the new series, the primary sector's share in GVA rises to 19.8 percent from 18.3 percent, while the tertiary sector's share dips to 54.3 percent from 56.4 percent, with the secondary sector broadly unchanged.
First Published: Feb 28, 2026, 11:53
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