(Image source from: Tribuneindia.com)

India's economy picked up speed in the fiscal year 2026, with preliminary government statistics indicating real GDP growth of 7.7%, an increase from 7.1% in the prior year, even amid global uncertainties, geopolitical issues, and high energy costs. Figures shared by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday revealed that the economy grew by 7.8% during the January to March period, signifying strong growth continued until the financial year's conclusion. The real GDP, adjusted to constant prices from 2022-23, is estimated to have reached Rs 323.12 lakh crore in fiscal year 2026, a rise from Rs 299.89 lakh crore in fiscal year 2025. Nominal GDP, factoring in inflation, increased by 8.9%, rising to Rs 346.36 lakh crore from Rs 318.07 lakh crore the previous year. These initial figures rely on actual data from all four quarters of fiscal year 2026 and represent a change from the Second Advance Estimates released in February, which were based only on data until the December quarter. The most recent estimates indicate that economic activity remained strong throughout fiscal year 2026, with both GDP and Gross Value Added (GVA) growth improving from the year before.

Real GVA, which counts economic output without taxes and subsidies, increased by 7.9% in fiscal year 2026, compared to 7.3% in fiscal year 2025. At current prices, nominal GVA saw a rise of 9.1%, reaching Rs 314.87 lakh crore from Rs 288.54 lakh crore a year prior. The data revealed widespread growth across the economy, with services continuing to represent the largest portion of economic activity, while manufacturing, construction, and other industrial areas also played a role in the growth. The government stated that the estimates were generated using a wide variety of measures, such as industrial production, GST collections, corporate earnings, vehicle sales, freight movement, telecom usage, banking activity, tax collections, and trade information. The economy maintained strong momentum in the last quarter of fiscal year 2026. The real GDP for the January to March period reached Rs 87.77 lakh crore, compared to Rs 81.40 lakh crore the year before, resulting in a growth rate of 7.8%.

During the quarter, nominal GDP rose by 9.1% to Rs 94.65 lakh crore. Real GVA increased by 7.9% in the March quarter, while nominal GVA grew by 9.9%. The latest figures suggest that domestic demand remained strong in the final months of the financial year, supporting growth in spite of a tough global environment. The provisional estimates for fiscal year 2026 are part of a new series of GDP calculations using 2022-23 as the reference year, which the government introduced in February this year. MoSPI mentioned that the estimates include updated data for the fourth quarter and revised figures for earlier quarters. The ministry also noted that upcoming GDP reports will reflect revised Index of Industrial Production (IIP) and Wholesale Price Index (WPI) data based on the 2022-23 reference year. The next quarterly GDP report, covering the April to June quarter of fiscal year 2027, is set to be released on August 31, 2026.