India GDP Growth Hits 7.7% in FY26 as Manufacturing and Services Sectors Lead Expansion
India's economy demonstrated significant momentum in the 2025-26 financial year, with real Gross Domestic Product (GDP) growing by 7.7%. This expansion was bolstered by strong performances across the secondary and tertiary sectors, reflecting resilient domestic demand and industrial activity.
- Republic Business
- 2 min read
The Ministry of Statistics and Programme Implementation (MoSPI) released provisional estimates for the fiscal year 2025-26. Real GDP reached ₹323.12 lakh crore, hence marking a steady increase from the 7.1% growth recorded in the previous financial year. Nominal GDP also witnessed a growth of 8.9% during the same period.
Sectoral Drivers of Growth
The primary drivers of this were the secondary and tertiary sectors. The tertiary sector, which encompasses services such as finance, real estate, and trade, registered an impressive 9.3% growth at constant prices. The secondary sector also, including manufacturing and construction, posted an 8.8% growth rate.
Within the industrial landscape, several segments achieved double-digit growth. This includes the manufacturing sector, along with financial, professional, and transport-related services. Meanwhile, the primary sector, led by agriculture and fishery, observed a growth rate of 3.2%, providing a stable foundation for the overall economy.
Strong Q4 Performance
The final quarter of the fiscal year provided a strong finish to the annual performance. Real GDP in the January-March 2026 quarter grew by 7.8%. This period was characterized by robust investment activity, with Gross Fixed Capital Formation (GFCF) recording a 10.8% growth rate at constant prices. Private final consumption expenditure also remained resilient, posting a 7.1% increase.
These figures show a period of broad-based economic recovery and expansion. As the government continues to focus on infrastructure and service-led growth, the data suggests that the economy remains well-positioned to maintain its current trajectory in the coming quarters.
Published By : Shourya Jha
Published On: 5 June 2026 at 16:24 IST