India's GDP Surge: New Base Year Signals Robust Economic Growth

India reports a 7.8% GDP growth for Q3 FY26, marking sustained economic progress despite a slight deceleration from Q2. Updated GDP measures, using a 2022-23 base year, promise greater accuracy and improved data for policymakers and investors, reflecting the economy's evolving structure and high-growth potential.

India witnessed a 7.8% GDP growth in the October-December 2025 quarter (Q3 FY26), signaling continued economic momentum. This comes in under the new 2022-23 base year series, after an 8.4% growth in Q2 FY26. Experts have identified agriculture and non-manufacturing sectors as key drivers of this growth.

Aditi Nayar, Chief Economist at ICRA, remarked on the expected easing of growth, highlighting the robust economic outlook, as GDP is projected to expand by 7.6% in FY2026, an increase from 7.1% in FY2025. Notably, the manufacturing sector's Gross Value Added (GVA) has sustained double-digit growth for five consecutive quarters.

The updated GDP framework enhances the credibility of India's economic statistics, according to Rajeev Juneja, President of PHDCCI. This revision, incorporating datasets from sources like GST filings, promises more accurate economic assessments, aiding policymakers and businesses in making informed decisions based on real market conditions.

(With inputs from agencies.)