India's GDP growth slows to 7.8% in Q4
What's the story
India's economy grew by 7.8% in the fourth quarter (Q4) of the fiscal year 2026, down from the previous quarter's growth rate of 8%. The latest figures come as part of a new series for gross domestic product (GDP), with 2022-23 as the new base year. The revision aims to better reflect changes in post-pandemic consumption patterns and the rapid growth of the digital economy.
Economic indicators
Nominal GDP grew by 9.1% in Q4 FY26
The inflation-adjusted GDP for India rose to ₹87.77 lakh crore in Q4 FY26, up from ₹81.4 lakh crore a year ago. In nominal terms, which takes into account price changes, the GDP grew by 9.1% to ₹94.65 lakh crore during this period. Meanwhile, the Gross Value Added (GVA), a measure of economic activity across sectors, also witnessed a real-term growth of 7.9% in Q4 FY26 to ₹80.18 lakh crore from ₹74.32 lakh crore last year.
Annual performance
GDP growth for FY26 estimated at 7.7%
For the entire fiscal year 2026, India's economy is estimated to have grown by 7.7%, with inflation-adjusted GDP rising to ₹323.12 lakh crore from ₹299.89 lakh crore in FY25. The growth rate is an improvement over the previous fiscal year's rate of 7.1%. In nominal terms, which includes the impact of inflation, the GDP is estimated to have expanded by 8.9% to ₹346.36 lakh crore in FY26 from ₹318.07 lakh crore last year.
Revised outlook
RBI revises growth forecast for FY27
Earlier today, the Reserve Bank of India (RBI) revised its growth forecast for FY27 down to 6.6% from an earlier estimate of 6.9%. The revision comes in light of rising global uncertainties stemming from the ongoing US-Iran conflict in West Asia. The central bank now projects GDP growth of 6.6% in Q1, 6.3% in Q2, 6.5% in Q3 and 6.8% in Q4 for FY27.