India’s economy is growing at a strong pace and the growth rate is expected to remain high in the coming years. Chief Economic Advisor (CEA) V. Anantha Nageswaran said that the country’s growth momentum remains intact and the GDP growth estimate for the financial year 2027 (FY27) has been increased from 7% to 7.4%.
GDP growth was 7.8% in the third quarter
India’s GDP growth was recorded at 7.8% in the third quarter of FY 2026. This is slightly less than the 8.4% of the previous quarter, but better than the market estimate of 7.4%. This is the first time that GDP figures have been released on the basis of the new base year 2022-23.
Economic data prepared in a new way
The Ministry of Statistics and Program Implementation (MoSPI) has changed the national income calculation system by adopting the double deflation method and also including modern economic sectors. Its purpose is to present a more accurate picture of the economy.
Strong domestic demand becomes a major force
Nageswaran said that the main reasons for the strength of the economy are macroeconomic activities and strong domestic demand. Indicators like two-wheeler sales show that consumer spending has remained consistent. He also said that per capita nominal GDP growth could reach 9%.
Estimate of 7.6% growth in FY26
According to the revised data, India’s economic growth rate is expected to be around 7.6% in the entire financial year 2026. Analysts believe that with this, India will maintain its position among the fastest growing large economies of the world.
Relief from inflation and supply side
Good Rabi crop, adequate food grain reserves and softening global commodity prices are expected to keep inflation under control. This will support economic stability.
Expectations from trade agreements and investments
Progress in ongoing trade negotiations with the US and EU is expected to increase exports and foreign investment. The government is working on a plan to keep the fiscal deficit at around 4.5% of GDP in 2025-26 while maintaining fiscal discipline. Overall, signs of strength in both consumption and investment suggest that the outlook for the Indian economy remains positive in the times to come.