India's economy grows 7.7% in FY26 despite global turmoil, war concerns
Fresh and latest numbers suggest that domestic demand remained resilient through the final months of the financial year.
This boosted Growth amid a challenging global backdrop.
However, concerns remain. A disappointing monsoon, with the lowest rainfall in 11 years, could hurt growth.
Manufacturing output rose 7.3% year-on-year in January-March, compared with a revised expansion of 12.8% in the previous quarter.
Provisional government estimates show economic growth accelerated from the previous year, with robust expansion in the January-March quarter helping lift full-year GDP growth to 7.7%.
India's economy accelerated in FY26, with provisional government data showing real GDP growth of 7.7%, up from 7.1% in the previous year despite a backdrop of global uncertainty, geopolitical tensions and elevated energy prices.
Data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday also showed that the economy expanded 7.8% in the January-March quarter, indicating growth remained robust through the end of the financial year.
Real GDP, measured at constant 2022-23 prices, is estimated to have reached Rs 323.12 lakh crore in FY26, compared with Rs 299.89 lakh crore in FY25. Nominal GDP, which includes the impact of inflation, grew 8.9% to Rs 346.36 lakh crore from Rs 318.07 lakh crore a year earlier.
The provisional estimates are based on actual data available for all four quarters of FY26 and represent a revision from the Second Advance Estimates released in February, which were compiled using data only up to the December quarter.
The latest estimates suggest economic activity remained resilient through FY26, with both GDP and Gross Value Added (GVA) growth improving from the previous year.
Real GVA, which measures economic output excluding taxes and subsidies, grew 7.9% in FY26, compared with 7.3% in FY25.
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Chief economic adviser, V Anantha Nageswaran, had forecast economic growth in the current fiscal year at 7% to 7.4% in a projection issued before the Middle East conflict began.
India has been one of the economies hardest hit by the Iran war that has stretched into a fourth month with no immediate prospects of a peace deal between Washington and Tehran.
India is the world's third-largest crude importer and consumer, and it is heavily dependent on supplies from the Middle East.
The Middle East (or West Asia) war is seen pulling down growth in the Indian economy to 6.6% this fiscal year, the central bank said earlier in the day, as it kept its benchmark interest rate unchanged while signalling a possible hawkish shift due to inflation pressures and weakness in the rupee.
Domestic inflation is set to pick up and fiscal and current account balances are set to widen, which has battered financial markets.
Middle East as a term is Eurocentric, coined by British and American strategists in the 19th and 20th centuries to describe the region relative to Europe and distant locations.
West Asia -- is a neutral, geographically accurate term based on continental borders.
It defines the region as the western part of the Asian continent.
It focuses strictly on geography. It encompasses the Arabian Peninsula, the Levant, Mesopotamia, the Armenian highlands, Anatolia, and Iran.
It does not include Egypt or other African nations.
India's Growth in farm output, a sector which employs more than 40% of the country's enormous workforce, came in at 3.6% in the fourth quarter of 2025/26 compared with a revised 1.7% a quarter earlier.
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