India's Economic Surge: Revised Data Signals Strong Growth

India's economy experienced a remarkable 7.8% growth in October-December compared to the previous year, and a revision in national output data suggests an upward trend. For the fiscal year ending in March, the growth is anticipated to reach 7.6%, marking an improvement over previous forecasts.

India's economy has demonstrated impressive growth, with the latest figures showing a 7.8% rise in GDP during the October-December period compared to the prior year. This follows an 8.4% growth in the preceding quarter, as per the government's revised national output data series.

The revision incorporates improved sectoral representation and reduced deflator-related distortions, offering a more comprehensive view of economic activity. Consequently, projections for the full fiscal year ending in March have been adjusted to reflect a growth of 7.6%, up from the previously anticipated 7.4%.

Madhavi Arora, Chief Economist at Emkay Global Financial Services, highlights the recalibration process, noting that the new GDP series effectively captures the economic dynamism. The FY26 Second Advance Estimate projects an even stronger growth at 7.6%, a notable increase from the earlier 7.4% estimate.