India GDP growth 2025-26 hits 7.7%, Q4 clocks 7.8% on sector surge
Synopsis
India's economy grew 7.7% in 2025-26, with Q4 alone clocking 7.8% — the first GDP print under a revised 2022-23 base year. With services expanding 9.9%, double-digit growth across manufacturing and trade, and the IMF already flagging India as the only major economy above 6%, this is the data point that cements India's global growth leadership heading into 2026-27.
Key Takeaways
India's full-year GDP growth for 2025-26 came in at 7.7 per cent , per Ministry of Statistics data released on 5 June 2025 .
Q4 (January-March 2025) GDP growth was 7.8 per cent , the strongest quarterly reading of the year.
The tertiary sector grew 9.9 per cent ; the secondary sector grew 8.8 per cent ; the primary sector grew 3.2 per cent .
Manufacturing, trade, hotels, transport, financial services, and real estate all recorded double-digit growth in 2025-26.
Both private consumption and gross fixed capital formation grew over 7.5 per cent , underpinned by government infrastructure spending.
The figures are the first published under a revised base year of 2022-23 , surpassing the NSO's earlier advance estimate of 7.6 per cent .
India's GDP growth for 2025-26 came in at a robust 7.7 per cent for the full financial year, with the January-March quarter (Q4) recording an even stronger 7.8 per cent, according to data released by the Ministry of Statistics on Friday, 5 June 2025. The figures were driven by broad-based expansion across agriculture, construction, and services sectors, cementing India's standing as the world's fastest-growing major economy amid a global slowdown.
Sector-wise Performance
The secondary sector — encompassing manufacturing and construction — recorded a strong 8.8 per cent growth, while the tertiary sector expanded by 9.9 per cent. The primary sector, which includes agriculture and fisheries, grew by 3.2 per cent.
Notably, manufacturing, trade, repair, hotels, transport, communications, broadcasting, storage, financial services, real estate, and professional services all attained double-digit growth during 2025-26, according to the official statement.
Investment and Consumption Drive Demand
On the expenditure side, both private final consumption expenditure and gross fixed capital formation grew by over 7.5 per cent during 2025-26. This reflects the scale of government investment in large infrastructure projects — including highways, railways, ports, and airports — which analysts say has provided a sustained demand floor for the broader economy.
New Base Year and Revised Estimates
The GDP figures are the first to be published using a revised base year of 2022-23, making them a significant new benchmark for evaluating India's economic trajectory. Earlier, the Second Advance Estimates released by the National Statistical Office (NSO) had placed real GDP growth at 7.6 per cent for 2025-26, citing strong expansion in private consumption and fixed investment. The final print at 7.7 per cent marginally surpassed that projection.
India's Edge in a Slowing Global Economy
The International Monetary Fund (IMF) had forecast India to be the only major economy expected to sustain over 6 per cent growth in 2025-26, as US tariff disruptions weighed on global trade and dampened growth prospects worldwide. India's final print at 7.7 per cent comfortably exceeds that threshold, reinforcing the country's position as a relative outperformer in a difficult external environment.
With infrastructure-led capital formation holding firm and services continuing their double-digit expansion, the structural drivers of India's growth story remain intact heading into 2026-27.
Point of View
But the more consequential detail is that it arrived under a new base year — meaning direct comparisons with prior years carry a statistical caveat that most coverage will underplay. The double-digit expansion in services and manufacturing is genuine, but India's growth story remains heavily anchored to government capital expenditure; private investment is recovering, not yet leading. The IMF's 6 per cent floor was always a low bar for India — the real question for 2026-27 is whether consumption-driven demand can sustain momentum if infrastructure spending moderates under fiscal consolidation pressure.
NationPress
12 Aug 2026
Frequently Asked Questions
What is India's GDP growth rate for 2025-26?
India's GDP grew at 7.7 per cent for the full financial year 2025-26, according to data released by the Ministry of Statistics on 5 June 2025. The Q4 (January-March) quarter recorded an even higher 7.8 per cent growth.
Which sectors drove India's GDP growth in 2025-26?
The tertiary sector (services) led with 9.9 per cent growth, followed by the secondary sector (manufacturing and construction) at 8.8 per cent. The primary sector, driven by agriculture and fisheries, grew 3.2 per cent. Manufacturing, trade, hotels, transport, and financial services all posted double-digit growth.
How does the final GDP figure compare to earlier estimates?
The National Statistical Office's Second Advance Estimates had projected 7.6 per cent growth for 2025-26. The final print at 7.7 per cent marginally exceeded that forecast, reflecting stronger-than-anticipated performance in the final quarter.
What is the significance of the revised base year 2022-23?
These GDP figures are the first published using a revised base year of 2022-23, replacing the earlier 2011-12 base. This makes the data a new benchmark for assessing India's economic performance and means figures are not directly comparable with older series.
What did the IMF say about India's growth outlook?
The IMF had forecast India to be the only major economy expected to clock over 6 per cent growth in 2025-26, amid global disruptions from US tariff measures. India's final 7.7 per cent print comfortably exceeded that threshold.
