India’s GDP Growth Slows to 7.8% in Q3FY26 Under New GDP Series

India’s GDP growth slowed to 7.8% in Q3FY26 which is compared to 8.4% in Q2. According to fresh data released on 27 February 2026. The figures are based on the new GDP series with 2022-23 as the base year. Despite the quarterly moderation, the full year FY26 growth estimate has been revised upward to 7.6%, higher than 7.1% recorded in FY25. The data signals stable economic momentum even amid global uncertainties.

India GDP Growth Q3FY26 Under New GDP Series

• According to the Ministry of Statistics and Programme Implementation (MoSPI), India’s real GDP stood at ₹84.54 trillion in the October-December quarter (Q3FY26) which is compared to ₹78.41 trillion in Q3FY25.
• This translates into 7.8% year on year growth.
• Nominal GDP is measured at current prices, rose 8.9% to ₹90.91 trillion in Q3FY26, up from ₹83.46 trillion a year earlier.
• The moderation from 8.4% in Q2 to 7.8% in Q3 indicates slight cooling, but overall growth remains robust.

FY26 GDP Estimate Improves to 7.6%

The FY26 GDP estimate under the new GDP series projects real GDP at ₹322.58 trillion, compared to ₹299.89 trillion in FY25 (First Revised Estimate).

Key highlights,

• Real GDP growth FY26: 7.6%
• Real GDP growth FY25: 7.1%
• Nominal GDP FY26: ₹345.47 trillion
• Nominal GDP growth FY26: 8.6%

This upward revision shows stronger momentum in the Indian economy compared to earlier projections under the old base year.

GVA Growth Strengthens in FY26

Gross Value Added (GVA), which measures sector-wise production, also showed improvement.

• Real GVA FY26: ₹294.40 trillion
• Growth rate: 7.7%
• Real GVA FY25: 7.3%

For Q3FY26

• Real GVA: ₹77.38 trillion
• Growth: 7.8%

Nominal GVA for FY26 is estimated at ₹313.61 trillion, marking an 8.7% increase.

Stronger GVA growth indicates healthy sectoral performance across manufacturing and services.

New GDP Series 2022-23 Base Year Explained

MoSPI introduced a new GDP series with 2022-23 as the base year, replacing the earlier 2011-12 base year.

The revised series includes,

• Updated data sources
• Improved methodology
• Better sectoral coverage
• Revised growth estimates

Under the new GDP series, growth rates for FY26 are higher than earlier First Advance Estimates calculated using the 2011-12 base year.

This rebasing reflects structural changes in the economy.

Sector-Wise Performance: Manufacturing Leads

Sector-wise data shows strong resilience,

• Manufacturing recorded double-digit growth in FY2023-24 and FY2025-26.
• Secondary and tertiary sectors grew above 9% in FY26.
• Trade, Repair, Hotels, Transport & Communication grew 10.1% at constant prices in FY26.
• Manufacturing remains a key driver under the new GDP series, contributing significantly to economic resilience.

Consumption and Investment Trends

Demand-side indicators remain positive,

• Private Final Consumption Expenditure (PFCE) grew above 7%.
• Gross Fixed Capital Formation (GFCF) also expanded by more than 7%.
• Strong investment growth signals confidence in economic prospects, while consumption supports domestic demand stability.

Background: India’s Growth Momentum Since FY24

India recorded real GDP growth of,

• 7.2% in FY2023-24
• 7.1% in FY2024-25
• 7.6% projected in FY2025-26
• Nominal GDP growth was 11% in FY24 and 9.7% in FY25.

The new GDP series shows continuity in strong growth performance over three consecutive years, reinforcing India’s position among the fastest-growing major economies.

Question

Q. India’s GDP growth in Q3FY26 under the new series was,

A) 8.4%
B) 7.6%
C) 7.8%
D) 6.9%