India's economy expanded 7.7% in FY26, accelerating from 7.1% in the previous fiscal year and slightly exceeding the 7.6% growth projected in the Second Advance Estimates, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. 

The upward revision follows the incorporation of economic data for the January-March quarter, which was unavailable when the Second Advance Estimates were released in February. GDP growth for the fourth quarter of FY26 is estimated at 7.8%. 

Real Gross Domestic Product (GDP), measured at constant prices, is estimated to have reached ₹323.12 lakh crore in FY26, compared with the First Revised Estimate of ₹299.89 lakh crore in FY25. 

Nominal GDP, measured at current prices, is estimated at ₹346.36 lakh crore in FY26, up from ₹318.07 lakh crore in the previous fiscal, reflecting a growth rate of 8.9%. 

Gross Value Added (GVA), a key indicator of economic activity, also recorded stronger growth during the year. Real GVA is estimated at ₹294.91 lakh crore in FY26, compared with ₹273.36 lakh crore in FY25, registering a growth rate of 7.9%, higher than the 7.3% growth recorded a year earlier. 

Nominal GVA is estimated at ₹314.87 lakh crore in FY26, against ₹288.54 lakh crore in FY25, translating into a growth rate of 9.1%. 

The revised estimates are based on the new GDP series with 2022-23 as the base year, introduced by the ministry on February 27, 2026. While the Second Advance Estimates were prepared using data available up to the third quarter of FY26, the latest revision incorporates information received for the January-March quarter. 

Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank, said, “The 4Q GDP came in higher than expected given the robust private consumption and investment. Going ahead, however, we remain wary on the headwinds from the geopolitical and ElNino led supply side shocks. Tightening financial conditions, higher inflation and weak monsoons could weigh across urban and rural demand. We expect GDP to hover in the 6-6.3% range, depending on how these risks play out.”

Dharmakirti Joshi, Chief Economist, Crisil, "The National Statistical Office (NSO) has estimated India’s gross domestic product (GDP) growth for fiscal 2026 at 7.7%, slightly higher than the second advance estimate of 7.6% released in February. The upward revision reflects a higher-than-expected growth in the fourth quarter, which printed at 7.8%—down from 8.0% in the third quarter but above the average growth of 7.4% in the previous 10 quarters—driven by healthy private consumption and fixed investments. Notably, the growth was despite headwinds from the West Asia conflict that began towards the end of February and intensified in March. In fiscal 2027, however, growth is set to weaken amid multiple headwinds, including higher prices of crude and other commodities, softer global growth and forecast of a below-normal monsoon. Global supply chain disruptions are already intensifying cost pressures and reduced input availability is expected to add to the pressure. We maintain our GDP growth forecast for fiscal 2027 at 6.6%, with risks tilted to the downside. Despite the slowdown in real GDP, the nominal GDP growth is set to be higher due to higher inflation based on both Wholesale Price Index and the Consumer Price Index."

Separately, the Reserve Bank of India's six-member Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, unanimously voted to keep the policy repo rate unchanged at 5.25%. The Standing Deposit Facility (SDF) rate was retained at 5%, while the Marginal Standing Facility (MSF) rate and the bank rate remained unchanged at 5.50%. 

The central bank, however, lowered its GDP growth forecast for FY27 to 6.6% from 6.9% projected earlier, citing global uncertainties, external headwinds and supply-side disruptions.