According to fresh GDP estimates published on February 27 under the updated national accounts series, India’s economy probably increased 7.6 percent in FY26 as opposed to 7.1 percent in the previous fiscal year.
With 2022–2023 as the new base year, the revised series projects growth to be 0.2 percentage points higher than the 7.4 percent expansion predicted in January using the previous 2011–12 base series.
The update takes into account broader economic coverage and methodological advancements. Additionally, growth projections for previous years have been raised. FY24 growth was 7.2 percent as opposed to 9.2 percent in the prior series, while FY25 growth was corrected to 7.1 percent from 6.5 percent.
Through the fiscal year, there has been consistent momentum, according to quarterly data. In contrast to the first quarter’s 6.7 percent growth and the second quarter’s 8.4 percent, the economy grew 7.8 percent in the third quarter.
Growth predictions for the first half of the year have also been updated, with Q1 growth now expected at 6.7 percent and Q2 growth at 8.4 percent, as opposed to previous estimates of 7.8 percent and 8.2 percent, respectively.
This updated GDP framework greatly expands the universe of covered business units by incorporating a larger database of enterprises. In order to better capture real economic activity across sectors, officials said the methodology also uses improved estimation methodologies, such as double deflation and revised extrapolation procedures.
By reflecting shifts in production dynamics, consumption patterns, and the expanding involvement of formal sector businesses in India’s economy, the rebasing exercise is anticipated to increase comparability with present economic structures.
