India's economy demonstrated robust performance in the final quarter of the 2025-26 fiscal year, with the gross domestic product (GDP) expanding by 7.8 per cent, according to official data released by the Ministry of Statistics & Programme Implementation (MoSPI) on June 5, 2026.
Full Year Growth Reaches 7.7%
The strong fourth-quarter performance lifted the full-year GDP growth for 2025-26 to 7.7 per cent, underscoring the resilience of the Indian economy amid global headwinds. The data reflects sustained momentum in key sectors such as manufacturing, services, and agriculture.
Sectoral Contributions
Preliminary estimates indicate that the expansion was driven by robust domestic consumption, increased capital expenditure, and a revival in private investment. The services sector remained a major contributor, while manufacturing activity picked up pace due to easing supply chain constraints.
The government's infrastructure push and digital transformation initiatives also played a pivotal role in supporting economic activity. Agriculture output grew steadily, aided by favorable monsoon conditions and improved farm productivity.
Comparison with Previous Quarters
The 7.8 per cent Q4 growth is slightly higher than the 7.6 per cent recorded in the third quarter, indicating a gradual acceleration. For the entire fiscal year, the 7.7 per cent expansion aligns with the Reserve Bank of India's projections and surpasses many global estimates.
Economists attribute the steady growth to effective policy measures, including fiscal consolidation and structural reforms. However, they caution that external risks such as geopolitical tensions and volatile commodity prices could pose challenges in the upcoming fiscal year.
Government's Outlook
The Ministry of Statistics noted that the data underscores the fundamental strength of the Indian economy. The government remains committed to sustaining high growth through continued reforms and investment in key sectors. Further detailed sectoral data is expected in subsequent releases.
