New Delhi: India’s economy expanded at a strong pace in the third quarter of the current financial year, according to official data released on Friday.
The country’s Gross Domestic Product (GDP) grew 7.8% in the quarter ended December 31, 2025 (Q3 FY26). Analysts had earlier projected growth in the range of 7% to 8.1%.
The second advance estimates placed full-year real GDP growth for FY26 at 7.6%. The revised projection is above the earlier advance estimate of 7.4% that was released in January.
The latest data has been released with a revised base year of 2022-23. Earlier, the base year was 2011-12. The change aims to better capture the evolving structure of the economy, according to an official statement.
Economic growth for the previous quarter of this fiscal (Q2 FY26) has also been revised upward from 8.2% to 8.4%.
Nominal GDP recorded an 8.6% rise in Q3 FY26. Gross Value Added (GVA), which reflects the value of goods and services produced across sectors, also showed improvement.
In real terms, GVA is estimated at Rs 294.40 trillion in FY26, compared with Rs 273.36 trillion in FY25. This marks a growth rate of 7.7%, higher than 7.3% in the previous year.
For Q3 FY26, real GVA stood at Rs 77.38 trillion, up from Rs 71.77 trillion in the same quarter last year. This translates into 7.8% growth.
In nominal terms, GVA for FY26 is projected at Rs 313.61 trillion, compared to Rs 288.54 trillion in FY25, an increase of 8.7%. Nominal GVA in Q3 FY26 rose 8.2% to Rs 82.58 trillion from Rs 76.35 trillion a year ago.
The new GDP series indicates that quarterly growth eased slightly to 7.8% in Q3 FY26. However, the full-year estimate for FY26 remains stronger than the previous financial year.
Sector-wise, the primary sector, which includes agriculture, livestock, forestry, fishing, mining, and quarrying, is estimated to grow 4.9% in 2024-25. This is higher than 2.6% recorded in 2023-24.
The secondary sector, covering manufacturing, electricity, gas, water supply, and construction, is projected to grow 8% in 2024-25. In comparison, it had expanded 11.6% in 2023-24.
The tertiary or services sector is estimated to grow 7.9% in 2024-25, up from 7.3% in the previous year.
Growth in real GVA during 2024-25 has been driven mainly by manufacturing, mining and quarrying, construction, financial services, and real estate and professional services. Agriculture and allied activities, utility services, and other services have recorded relatively modest growth during the year.
