India’s Q3FY26 GDP growth slows to 7.8% from 8.4% in Q2 on new series

Real GDP — which adjusts for inflation — stood at ₹84.54 trillion in the October-December quarter (Q3FY26), up from ₹78.41 trillion in the same period last year. This translates into a 7.8 per cent year-on-year growth rate.

Nominal GDP, which is calculated at current prices without adjusting for inflation, rose 8.9 per cent to ₹90.91 trillion in Q3FY26, compared to ₹83.46 trillion a year ago.

For the full financial year FY26, India’s real GDP is estimated at ₹322.58 trillion, higher than the First Revised Estimate of ₹299.89 trillion for FY25. The economy is now projected to grow 7.6 per cent in FY26, compared to 7.1 per cent in the previous year.      Nominal GDP for FY26 is estimated at ₹345.47 trillion, up from ₹318.07 trillion in FY25. This marks an 8.6 per cent increase year-on-year.

Gross Value Added (GVA), which measures the value of goods and services produced across sectors, also showed stronger growth during the year.

In real terms, GVA is estimated at ₹294.40 trillion in FY26, compared to ₹273.36 trillion in FY25. This reflects a growth rate of 7.7 per cent, higher than the 7.3 per cent recorded last year.      For the third quarter alone, real GVA stood at ₹77.38 trillion, up from ₹71.77 trillion in Q3FY25, registering 7.8 per cent growth.

In nominal terms, GVA for FY26 is projected at ₹313.61 trillion, compared to ₹288.54 trillion in FY25, marking an 8.7 per cent rise. Nominal GVA in Q3FY26 increased 8.2 per cent to ₹82.58 trillion from ₹76.35 trillion a year earlier.

Overall, the new GDP series shows that while quarterly growth moderated slightly to 7.8 per cent in Q3FY26, the full-year growth estimate for FY26 remains stronger than the previous financial year.      The ministry on Friday released the new series of Annual and Quarterly National Accounts Estimates with 2022-23 as the base year. This replaces the earlier GDP series that used 2011-12 as the base year.      The revised series updates growth numbers and introduces several methodological and data-related improvements. Higher growth estimates under new series.      The economy has shown steady momentum, with real GDP growth of 7.2 per cent in FY 2023-24 and 7.1 per cent in FY 2024-25.

Real GDP is estimated to grow 7.6 per cent in FY 2025-26, while nominal GDP is projected to rise 8.6 per cent. These growth rates are higher than the respective First Advance Estimates calculated using the previous base year (2011-12).

The overall economic performance in FY 2025-26 is mainly supported by strong real GDP growth in the second quarter (8.4 per cent) and third quarter (7.8 per cent).

Nominal GDP recorded growth rates of 11.0 per cent in FY 2023-24 and 9.7 per cent in FY 2024-25.

• The manufacturing sector has been a key driver of economic resilience over three consecutive financial years after rebasing. It recorded double-digit growth in FY 2023-24 and FY 2025-26.
• The secondary and tertiary sectors supported overall growth, each registering more than 9.0 per cent growth in FY 2025-26.
• The ‘Trade, Repair, Hotels, Transport, Communication & Services related to Broadcasting and Storage’ sector grew 10.1 per cent at constant prices in FY 2025-26.