India's GDP grows 7.7% in FY26, fastest-growing major economy: Rajnath Singh
Synopsis
India's full-year GDP growth came in at 7.7% for FY 2025-26 — up from 7.1% the year before — with the final quarter accelerating to 7.8%, defying global economic uncertainty. Defence Minister Rajnath Singh and PM Modi both claimed the figures as validation of a decade-plus of structural reform, even as independent economists continue to scrutinise the methodology behind India's growth accounting.
Key Takeaways
India's GDP grew 7.7 per cent in FY 2025-26 , up from 7.1 per cent in FY 2024-25, according to MoSPI .
Growth accelerated to 7.8 per cent in the January-March 2026 quarter .
Real GDP is estimated at ₹323.12 lakh crore in FY26; nominal GDP at ₹346.36 lakh crore , a nominal rise of 8.9 per cent .
Defence Minister Rajnath Singh credited 12 years of 'Reform, Perform, Transform' policy for the performance.
PM Narendra Modi posted on X that the figures reflect the 'inherent strength' of the economy and the 'hard work of 140 crore Indians.'
Defence Minister Rajnath Singh on Saturday, 6 June 2025 hailed India as the world's fastest-growing major economy, pointing to official data showing the country's GDP expanded by 7.7 per cent in FY 2025-26 — up from 7.1 per cent in the previous fiscal year. Growth accelerated further to 7.8 per cent in the January-March quarter of FY26, according to figures released by the Ministry of Statistics and Programme Implementation (MoSPI).
What the Data Shows
According to MoSPI, real GDP — measured at constant prices — is estimated at ₹323.12 lakh crore in FY 2025-26, compared with the First Revised Estimate of ₹299.89 lakh crore in FY 2024-25. Nominal GDP, measured at current prices, rose to ₹346.36 lakh crore in FY26 from ₹318.07 lakh crore in FY25, reflecting a nominal growth rate of 8.9 per cent.
What the Government Said
Singh, posting on social media platform X, attributed the performance to 12 years of economic policy anchored in what he described as the mantra of 'Reform, Perform, Transform'. 'Under the leadership of Prime Minister Shri Narendra Modi, India has combined economic growth with stability, confidence, sustainability, and credibility,' Singh wrote, adding that the trajectory was building toward the vision of 'Viksit Bharat' and strengthening the aspirations of 140 crore Indians.
Prime Minister Narendra Modi also weighed in on Friday, posting on X that the figures reflected the 'inherent strength' of the economy, the 'success of reforms,' and the 'hard work of 140 crore Indians.' Modi added that his government would 'leave no stone unturned' to improve ease of living, ease of doing business, and opportunities for the country's youth.
Why It Matters
The data arrives at a moment of significant global economic stress, with several major economies grappling with slowing growth, elevated inflation, or trade disruptions. India's acceleration in the fourth quarter — when global headwinds were most pronounced — is being cited by government officials as evidence of structural resilience rather than cyclical luck. Notably, this marks the second consecutive fiscal year in which India has posted GDP growth above 7 per cent, reinforcing its position at the top of major-economy growth tables.
Context and Caveats
The 7.7 per cent full-year figure surpasses the 7.1 per cent recorded in FY25 and exceeds most pre-year forecasts from multilateral institutions. Critics and independent economists, however, have at various points questioned the methodology underpinning India's GDP estimates, particularly the treatment of the informal sector. The government has not addressed those concerns in its latest release. How this growth translates into employment and household income — metrics that do not always move in tandem with headline GDP — remains a subject of ongoing debate among economists.
What Comes Next
With the full-year number now confirmed, attention will shift to whether the momentum can be sustained into FY 2026-27 amid evolving global trade conditions. Industry bodies and the Reserve Bank of India (RBI) are expected to revise their forward projections in light of the stronger-than-anticipated FY26 outturn.
Point of View
But the government's framing deserves scrutiny. The headline number does not automatically answer the harder questions: whether growth is broad-based, whether it is reaching the informal workforce, and whether the GDP methodology — long contested by independent economists — is fully capturing economic reality. Two consecutive years above 7 per cent is a credible run, but India's per-capita income and employment data tell a more complicated story. The pivot to 'Viksit Bharat' as a framing device is politically useful; whether the underlying investment and productivity numbers justify that ambition by 2047 is a separate, more demanding test.
NationPress
13 Aug 2026
Frequently Asked Questions
What is India's GDP growth rate for FY 2025-26?
India's GDP grew by 7.7 per cent in FY 2025-26, up from 7.1 per cent in the previous fiscal year, according to data released by MoSPI. Growth accelerated to 7.8 per cent in the January-March 2026 quarter.
Why is India called the world's fastest-growing major economy?
India's 7.7 per cent growth rate in FY26 outpaces that of other large economies, including China, the United States, and major European nations, most of which are dealing with slower growth or recessionary pressures. Defence Minister Rajnath Singh cited this comparison in his 6 June 2025 statement.
What did PM Modi say about India's GDP figures?
Prime Minister Narendra Modi posted on X on Friday that the 7.7 per cent full-year and 7.8 per cent Q4 growth rates reflect the 'inherent strength' of the economy, the 'success of reforms,' and the 'hard work of 140 crore Indians.' He pledged continued focus on ease of living and ease of doing business.
What is the size of India's economy in FY 2025-26?
Real GDP — at constant prices — is estimated at ₹323.12 lakh crore in FY 2025-26, against ₹299.89 lakh crore in FY 2024-25. Nominal GDP stood at ₹346.36 lakh crore, reflecting an 8.9 per cent nominal growth rate.
What is 'Viksit Bharat' and how does it relate to the GDP data?
'Viksit Bharat' — meaning Developed India — is the government's long-term vision to transform India into a fully developed nation by 2047. Officials, including Defence Minister Singh, have cited the sustained above-7 per cent growth trajectory as evidence that the economy is on track toward that goal.
