Indian economy grew at 7.8% year-on-year in the third quarter (October-December) of fiscal 2025-26, according to the advance estimates of national accounts released by the Ministry of Statistics and Programme Implementation (MoSPI) under the new 2022-23 base year series. This is the first time that the data for the gross domestic product has been computed with the revised base year.
While the real GDP growth stood at 7.8%, nominal GDP or GDP at current prices in Q3 of FY 2025-26 is estimated at ₹90.91 lakh crore, against ₹83.46 lakh crore in Q3 of FY 2024-25, showing a growth rate of 8.9%. Real GVA in Q3 of FY 2025-26 is estimated at ₹77.38 lakh crore, against ₹71.77 lakh crore in Q3 of FY 2024-25, showing a growth rate of 7.8%.
The growth has been primarily attributed to the manufacturing sector. According to the government, the manufacturing sector has been the major driver in contributing to the resilient performance of the economy in the three consecutive financial years after rebasing. This sector has attained double-digit growth rates in FY 2023-24 and FY 2025-26.
The updated quarterly GDP estimates, part of the revamped GDP series reflecting an improved methodology and new data sources, show that the Indian economy maintained strong underlying momentum in Q3, supported by broad-based activity across sectors. Real gross domestic product (GDP) in Q3 was higher than several private sector projections and underscores the resilience of domestic demand amid external headwinds.
MoSPI’s release comes against the backdrop of sustained policy focus on boosting growth, stabilising inflation and maintaining macroeconomic stability. The services sector, manufacturing, and consumption demand have all contributed to the expansion, although data pointed to varying sectoral performance. External headwinds such as weak exports and global slowdowns remain risks, but have not significantly derailed domestic growth so far.
Economists had predicted the growth at 8% or more, with the base year as 2011-12. With the revised base year, previously published growth figures for Q1 and Q2 are also expected to be revised under the new 2022-23 base year series. The new GDP series has resulted in revisions to the 2023-24 growth rate from 8.2% to 7.2% and to that of 204-25 from 6.5% to 7.1%. The FY26 GDP growth is estimated at 7.6%.
