India’s economy was under pressure due to the ongoing conflict between Iran and America. Meanwhile, reports suggest that its growth momentum will strengthen in the 2025-26 financial year. According to preliminary data of the government, the country’s real GDP grew by 7.7 percent, which is more than the 7.1 percent growth of the last financial year.
The Ministry of Statistics and Program Implementation (MoSPI) released these figures on Friday. The data showed that the Indian economy grew by 7.8 percent during the January-March 2026 quarter, which shows that economic activity remained strong even in the last three months of the financial year. This growth in India’s GDP has come at a time when global economies are in flux, and geopolitical tensions and rising crude oil prices are creating challenges.
Real GDP, measured at constant (2022-23) prices, is estimated to grow to ₹323.12 lakh crore in the 2025-26 financial year, from ₹299.89 lakh crore in the previous year (2024-25). Meanwhile, nominal GDP – which takes into account the impact of inflation – is expected to grow by 8.9 per cent to ₹346.36 lakh crore in the 2025-26 financial year; In the last financial year it was ₹318.07 lakh crore.
According to the government, this estimate is based on many important economic indicators. These include industrial production, GST collection, corporate earnings, vehicle sales, freight traffic, use of telecom services, banking activities, tax collection and trade data.
What did the ministry say? The Ministry of Statistics and Program Implementation (MoSPI) said that while preparing the new estimates, new data for the fourth quarter (January-March) of the financial year 2025-26 as well as revised data from the previous quarter have been included. The ministry also announced that a new series of Index of Industrial Production (IIP) and Wholesale Price Index (WPI) based on the base year 2022-23 will be used in future GDP data releases. Moreover, the GDP data for the first quarter (April-June 2026) of the financial year 2026-27 is to be released on August 31, 2026.
