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India's Q4 GDP growth accelerates to 7.8%, annual growth at 7.7%

India’s economy ended FY2025–26 on a strong note, with GDP growth accelerating to 7.8% in the fourth quarter despite challenges arising from the West Asia crisis.

ENS Economic Bureau

BENGALURU:  Closing the 2025–26 fiscal year on a position of strength, the Indian economy showcased some resilience amid West Asia crisis , with real GDP expanding by 7.8% in the fourth quarter, comfortably outpacing market expectations of 7.3% of the growth trajectory.

According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), the Indian economy registered a full-year real GDP growth rate of 7.7%  with the revised base year. 

According to the official data, India’s real Gross Domestic Product (GDP), measured at constant prices, rose to ₹323.12 lakh crore during 2025–26 from ₹299.89 lakh crore in the previous financial year. Nominal GDP at current prices expanded by 8.9% to ₹346.36 lakh crore.

The Gross Value Added (GVA), considered a key measure of economic activity across sectors, grew by 7.9% during the financial year, compared with 7.3% a year earlier. Real GVA stood at ₹294.91 lakh crore.

Quarterly estimates showed economic activity remained strong in the final quarter of the fiscal year, primarily driven by the growth in the automobile sector like the commercial vehicle sales and domestic vehicle sales. Real GDP for January–March was estimated at ₹87.77 lakh crore, up from ₹81.40 lakh crore in the corresponding quarter last year. Nominal GDP in the quarter rose 9.1%.

Data released alongside the estimates indicated strong performance in several sectors. Commercial vehicle sales grew 12.6% during the year, exports of goods and services rose 9.3%, while foodgrain production expanded by 5.3%.

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