Prime Minister Narendra Modi said the 7.7 per cent GDP growth for fiscal 2025-26 shows the foundation of India’s economy was strong, and the country can manage itself amidst the ongoing global turmoil with the collective effort of its 140 crore citizens.
He maintained that India is the fastest growing major economy in the world.
New Delhi:India’s economy expanded 7.8 per cent in the January-March quarter, exceeding forecasts on strong domestic demand and government expenditure, before rising oil prices and supply-chain disruptions began clouding the outlook.
The government estimates GDP growth for the full fiscal year that ended in March at 7.7%, the National Statistics Office said, compared with a forecast of 7.6% from February.
The GDP growth compared with 7 per cent expansion a year back and 8 per cent in the previous quarter. Full-year growth accelerated to 7.7 per cent from 7.1 per cent in FY25, supported by healthy consumption and robust investment activity.
The January-March period accounted for just one month of disruptions caused by the war in Iran. The spike in oil prices and the disruption in supplies from the Middle East — a key source for India’s crude oil, natural gas and LPG — will be fully visible in the current April-June quarter.
Prime Minister Narendra Modi on Friday said the 7.7 per cent GDP growth for fiscal 2025-26 shows the foundation of India’s economy was strong, and the country can manage itself amidst the ongoing global turmoil with the collective effort of its 140 crore citizens.
He maintained that India is the fastest growing major economy in the world.
Modi said India clocked 7.7 per cent GDP growth in the fiscal year 2025-26, while the expansion was 7.8 per cent in the January-March quarter.
Finance Minister Nirmala Sitharaman on Friday said the government is committed to further drive the ‘Reform Express’ with decisive policy measures to ensure positive economic momentum amid global challenges.
“Our government, led by Hon’ble PM Shri @narendramodi is committed to further drive the ‘Reform Express’ with decisive policy measures to ensure positive economic momentum amidst the global challenges,” Sitharaman said in a post on X.
The Reserve Bank of India has already cut its 2026-27 (FY27) GDP growth forecast to 6.6 per cent from 6.9 per cent, citing elevated energy and commodity prices and persistent supply-chain disruptions linked to the conflict in West Asia.
Chief Economic Adviser V Anantha Nageswaran said India could return to a growth rate of more than 7 per cent in FY28 if external conditions improve.
He said even if growth slows below 7 per cent in FY27, as projected by the RBI, policy measures aimed at preserving macroeconomic stability and ensuring adequate supplies could help the economy return to a growth trajectory above 7 per cent in FY28, provided external conditions improve.
Gross value added, which strips out the volatile components such as indirect taxes and government subsidies to present a more accurate measure ​of underlying economic activity, grew 7.9 per cent during the January-March quarter, the data released by MoSPI showed.
“The fact that GVA growth at 7.9 per cent outpaced GDP growth suggests that India’s expansion was not solely demand-driven but also backed by strong production momentum,” said Rumki Majumdar, economist at Deloitte India.
Firm performance across services, manufacturing and construction indicates that the economy has entered a period of global uncertainty from a position of strength, which should help it better absorb potential supply-side shocks, she said.
“We remain cautiously optimistic that tensions in the Middle East will ease over the coming months and that supply-chain disruptions will gradually subside by the end of the year,” she said.
“Real GDP or GDP at constant prices is estimated to attain a level of Rs 323.12 lakh crore in the 2025-26, against the First Revised Estimate (FRE) of GDP for the year 2024-25 of Rs 299.89 lakh crore,” according to the data released by National Statistic Office (NSO).
The nominal GDP or GDP at current prices is estimated to attain a level of Rs 346.36 lakh crore in 2025-26, against Rs 318.07 lakh crore in 2024-25, showing a growth rate of 8.9 per cent.