Rohan Umak
Indian economy 2026: The Indian economy is projected to grow at 7.6% in the financial year 2025-26. This estimate is based on new GDP data released under the revised National Accounts Series. This is higher than the 7.1% growth rate of the previous fiscal year (FY 25). Growth for the previous fiscal year has also been revised, initially it was estimated at 6.5% but now it is raised to 7.1%. According to the data, the economy may perform better than expected in the third quarter. These new estimates, released on February 27, 2026, adopt 2022-23 as the base year.
The new series projects the growth rate in FY 25-26 will grow at 0.2% points higher than the previous series with a base year of 2011-12. Growth for FY 26 is projected at 7.4% in January under the old series, but has now been raised to 7.6%.
According to quarterly data, the economy has maintained a stable pace in the current FY 25-26. The growth rate in the first quarter (Q1) was at 6.7% percent, whereas earlier it was estimated to be 7.8%.
The growth rate for the second quarter (Q2) was 8.4%, which is higher than the earlier estimated growth rate of 8.2%. The growth rate for the Third quarter (Q3) is 7.8% which is better than the estimated of 7.7%. Although there was some softening in Q3 as compared to Q2, but overall the economic activity remained strong.
Reason behind amendments in the Growth Rate
This new revision of the data is made to improve the calculation methods and include broader coverage of the economy. The new series adopts more accurate data sources and updated standards, making the growth rate estimates more accurate.
Under the new series, the figures of previous years have also been changed. For FY25 growth rate is raised from 6.5% to 7.1% whereas the growth rate for FY24 is calculated at 7.2%, while it was 9.2% in the old series.
Overall, the revised figures show that India’s economy is maintaining strong momentum and in FY 2025-26, the growth rate is expected to reach 7.6%, as per the projections.
Shubh Laabh