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India's Economy Shows Strong Momentum
27 Feb
Summary
- India's GDP grew 7.8% in Q3 FY26, exceeding expectations.
- A new base year of 2022-23 was adopted for economic data.
- Future growth projections for FY27 are revised upward.
India's gross domestic product (GDP) recorded a growth of 7.8% in the third quarter of fiscal year 2026. This performance exceeded economists' expectations, even as it represented a moderation from the 8.4% growth seen in the preceding quarter. This marks the first quarterly GDP report utilizing the updated national accounts framework, with 2022-23 now serving as the new base year.
This revised data framework, incorporating methods like "double deflation" and expanded coverage of modern economic sectors, aims to offer a more precise reflection of India's economic landscape. Chief Economic Advisor V. Anantha Nageswaran highlighted that the economy maintains strong growth momentum, driven by broad-based economic activity.
Projections for the next fiscal year, FY27, have been revised upward, with the Economic Survey now forecasting growth between 7% and 7.4% under the new GDP series. This positive outlook is underpinned by favorable supply-side conditions, including robust agricultural sowing and stable inflation, alongside enhanced policy certainty and expected growth in exports and capital flows.
