SBI Research: Revised GDP Series Reveals Stronger Indian Economy and Manufacturing Growth
Synopsis
A recent SBI Research report reveals that India's revised GDP series indicates a larger economic base and a robust manufacturing sector. Despite a moderation in growth to 7.8% for Q3FY26, the revised figures show promising trends for future economic performance.
Key Takeaways
India's revised GDP series reflects a larger economy and stronger manufacturing .
Q3FY26 growth moderated to 7.8 percent .
Manufacturing growth remained robust with double-digit increases .
Services sector projected to grow 9 percent in FY26.
Agriculture sector growth estimated at 2.4 percent .
New Delhi, Feb 28 (NationPress) The newly adjusted GDP series for India reveals not only a broader economic landscape but also underscores the growing strength of manufacturing as a principal catalyst for growth. This observation comes even as the growth rate for Q3FY26 has tapered to 7.8 percent, according to a recent report released on Saturday.
As per the revised GDP series compiled by SBI Research, India's economic growth decreased to 7.8 percent during the third quarter of FY26, a decline from 8.4 percent in Q2.
For the entire financial year FY26, growth is projected at 7.6 percent, slightly above the previous estimate of 7.4 percent based on the older series.
The SBI report highlighted that while several annual growth figures have been adjusted, the overall size of the economy has significantly increased due to enhanced data collection and refined methodologies.
Specifically, growth for FY24 has been revised down to 7.2 percent from 9.2 percent, while FY25 has seen an upward revision to 7.1 percent from 6.5 percent.
More notably, the real GDP figures have experienced a substantial leap. For FY23, the real GDP is now estimated at Rs 261 lakh crore, compared to Rs 161 lakh crore in the previous 2011-12 series.
Likewise, FY25 real GDP has been adjusted to Rs 300 lakh crore, up from Rs 188 lakh crore previously.
This increase is attributed to better coverage, the implementation of double deflation in the manufacturing sector, and more comprehensive price indices.
Manufacturing has emerged as a leading performer in the revised figures, showcasing double-digit growth of 12.7 percent in FY24 and 11.5 percent in FY26.
In FY26, manufacturing growth remained robust, maintaining double digits throughout the three quarters thus far, with expansions of 10.6 percent in Q1, 13.2 percent in Q2, and 13.3 percent in Q3.
The report indicates that the use of double deflation has allowed for a more accurate reflection of value addition within the sector.
The services sector has also shown vigorous growth, projected to expand by 9 percent in FY26, compared to 7.9 percent in FY24.
In Q3 FY26, services grew by 9.5 percent, surpassing 9.3 percent in Q2 and 8.2 percent in Q3 FY25.
Notably, financial, real estate, IT, and professional services experienced significant growth, recording an expansion of 11.2 percent in the third quarter.
Conversely, agriculture and related sectors exhibited some slowdowns, with growth in agriculture, livestock, forestry, and fishing projected at 2.4 percent for FY26, down from 4.2 percent in FY25.
In Q3 FY26, this sector grew by only 1.4 percent, a decline from 5.8 percent in the same quarter last year, likely due to base effects.
Point of View
It's evident that the revised GDP series presents a comprehensive picture of India's economic landscape. The growth in manufacturing and services is encouraging, although the slowdown in agriculture calls for attention. This data encourages a balanced approach to economic planning, aligning with a nation-first strategy.
NationPress
10 May 2026
Frequently Asked Questions
What does the revised GDP series indicate about India's economy?
The revised GDP series reveals a larger economic base and highlights the strengthening manufacturing sector, indicating potential for future growth.
How has India's GDP growth rate changed?
India's GDP growth rate has moderated to 7.8% for Q3FY26, down from 8.4% in Q2.
What is the projected growth for FY26?
The growth for the full financial year FY26 is estimated at 7.6%, slightly higher than the previous projection of 7.4%.
What sectors are driving India's economic growth?
Manufacturing and services are the primary sectors driving growth, with manufacturing showing significant double-digit growth.
How has the agriculture sector performed?
The agriculture sector has shown some moderation, with a projected growth of 2.4% for FY26, down from 4.2% in FY25.
