India’s Economy Expands 7.8% In Q3 Under New GDP Series

India’s economy grew 7.8% in the October–December period (Q3) according to the newly released GDP series published by the Ministry of Statistics and Programme Implementation. The revised estimates place real GDP growth for FY2025-26 at 7.6%, marking an upward shift from projections made under the earlier 2011–12 base year.

Nominal GDP growth for the fiscal is estimated at 8.6%, reflecting moderate easing after elevated prints in the previous 2 years. The latest data highlights a continuation of strong economic performance supported by manufacturing gains and resilient domestic demand.

Quarterly Growth Trends Under the New GDP Series

MoSPI’s updated series shows the economy expanding 7.8% in Q3, following Q2 growth of 8.4% in FY2025-26. These back-to-back readings reinforce the strength seen over the last few financial years under the revised base.

Real GDP grew 7.2% in FY2023-24 and 7.1% in FY2024-25, indicating sustained momentum before the current year’s upwardly revised outlook. The new base captures broader coverage of evolving sectors and reflects updated structural shifts within the economy.

Trends In Nominal GDP Across Recent Years

Nominal GDP growth demonstrates continued buoyancy in both prices and output across 3 consecutive years. Nominal GDP rose 11.0% in FY2023-24 and 9.7% in FY2024-25 under the earlier series.

For FY2025-26, nominal growth is estimated at 8.6% under the revised base, showing a moderated pace compared with the previous 2 years. These figures collectively point to steady expansion supported by output gains across major sectors.

Sectoral Performance Led by Manufacturing

Manufacturing emerged as one of the strongest performers in the new GDP series. The sector recorded double‑digit growth in FY2023-24 and again in FY2025-26, supported by improved industrial output and broader supply‑side stability.

Both the secondary and tertiary sectors posted growth above 9% in FY2025-26, indicating a broad-based expansion across industry and services. Within services, the category encompassing trade, repair, hotels, transport, communication and broadcasting expanded 10.1% at constant prices.

Contribution Of Domestic Demand Components

On the expenditure side, private final consumption expenditure registered growth above 7% in FY2025-26. This reflects improving household spending during the year, supported by stronger activity in goods and services.

Gross fixed capital formation also grew above 7%, indicating sustained investment momentum across infrastructure, construction and industrial sectors. These components collectively contributed to overall economic stability and output growth.

Read More: Moody’s Projects India’s GDP Growth at 6.4% in FY27.

Conclusion

The new GDP series shows India sustaining strong growth momentum in FY2025-26, with Q3 output rising 7.8% and full-year real GDP expected at 7.6%. Manufacturing and key service categories delivered notable gains, while consumption and investment drove demand-side expansion.

Nominal GDP trends show moderating but steady growth following two years of elevated prints. The revised series provides updated insights into sectoral contributions and reflects broad-based economic resilience.

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