The Indian economy grew 7.7 percent in FY26, up from 7.6 percent projected in the second advance estimates, official data released by statistics ministry showed on June 5. In FY25, the real GDP growth was 7.1%.

In Q4, the GDP grew 7.8 percent, down from 8 percent in Q3FY26.  The decline in quarter-on-quarter growth was due to a sharp decline in manufacturing growth – which fell from 7.3 percent in Q4 from 12.8 percent in Q3.

Growth is FY27 is expected to lower by 110 basis points to 6.6 percent – as projected by the Reserve Bank of India (RBI).

The gross value added (GVA) growth was 7.9 during FY26. In Q4 too the growth was the same.

The full year’s GDP (of FY26) was released with the new base year 2022-2023.

The nominal GDP in FY26 grew by 8.9 percent, down from 9.7 percent in FY25.

On the expenditure side, private final consumption expenditure (PFCE) growth came in at 7.7 in FY26, up from 5.8 percent in FY25. And gross fixed capital formation’s (GFCF) growth soared to 8.2 percent in FY26 from 6.2 percent in FY25.

On the GVA side – manufacturing sector grew by 10.7 percent in FY26 from 9.3 in FY25. The agriculture sector growth eased to 3 percent in FY26 from 4.2 percent in FY25.

Services sector growth in FY26 stood at 9.3 percent in FY26, up from 7.9 percent in FY25.

The trade, transport, hospitality group (with Services) registered higher growth of 11% (in FY26) reflecting the trend of higher mobility in the economy and higher travel and tourism activity.

The financial sector too witnessed higher growth which can be attributed to higher growth emanating from the banking sector where both deposits and credit grew at impressive rates by the end of the year.