India's FY2026 GDP expands 7.7%, fastest in two years

India's economy recorded a 7.7% real GDP growth for the fiscal year 2025‑26, up from 7.1% the previous year, according to provisional figures released by the Ministry of Statistics and Programme Implementation. The fourth quarter alone grew 7.8% year‑on‑year, while nominal GDP rose 8.9% to 346.36 lakh crore. Broad‑based expansion was reflected in a 7.9% rise in real Gross Value Added, with manufacturing, construction, services and agriculture all contributing. Export growth reached 9.3% and imports surged 11.1%, driven by a 19.3% jump in machinery and equipment imports.

The Reserve Bank of India, shortly after the data release, lowered its growth forecast for FY27 to 6.6%, noting resilient domestic demand but early signs of moderation in some sectors. Analysts view the strong FY26 performance as a sign of underlying demand despite a challenging global environment.