what was India's GDP growth rate for the financial year 2025-26?'

India’s Gross Domestic Product (GDP) growth for the financial year 2025-26 is estimated at 7.7%, according to provisional data released by the Ministry of Statistics and Programme Implementation. This figure represents an acceleration from the 7.1% growth recorded in the previous financial year (2024-25) and is slightly higher than the 7.6% provisional estimate projected in February 2026.

Key Performance Metrics

Quarterly Growth: GDP growth specifically for the fourth quarter (Q4) of 2025-26 stood at 7.8%.

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Sector Highlights: The manufacturing sector grew at 10.7% for the full year, up from 9.3% in the first revised estimates for 2024-25. The broad services sector (including trade, hotels, transport, and communication) saw its growth quicken to 11% from 6.6% the year before.

Agriculture Slowdown: Conversely, the agriculture sector is expected to slow to 3% growth in 2025-26, down from 4.2% in 2024-25.

Consumption and Investment: Private final consumption expenditure (PFCE) increased to 7.7% (up from 5.8%), while asset creation—measured as gross fixed capital formation (GFCF)—grew by 8.2% (up from 6.4%).

Policy and Institutional Context

The government recently updated the base year for GDP data to 2022-23 and improved its calculation methodology. Prime Minister Narendra Modi attributed the 7.7% growth to the "inherent strength of our economy" and the success of various reforms. Finance Minister Nirmala Sitharaman highlighted that several sectors, including manufacturing and financial services, achieved double-digit growth at both constant and current prices.

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Future Outlook

Despite the strong performance in 2025-26, the Reserve Bank of India (RBI) Governor Sanjay Malhotra indicated that GDP growth for 2026-27 is expected to slow to 6.6%. Economists have warned that this projected slowdown is due to pressures on demand and price levels caused by the crisis in West Asia, alongside the possibility of a lower-than-normal monsoon.