• Source:JND

India's economy grew at a higher pace of 7.7 per cent during 2025-26 as compared to 7.1 per cent in 2024-25, according to government data released on Friday. The Ministry of Statistics and Programme Implementation said that the Gross Domestic Product (GDP) is expected to grow by 7.8 per cent in the January-March period of the fiscal year 2025-26.

It said that real GDP, or GDP at constant prices, is expected to reach Rs 323.12 lakh crore in 2025-26, compared to the First Revised Estimate (FRE) of ₹299.89 lakh crore in 2024-25.

Nominal GDP, or GDP at current prices, is expected to reach Rs 346.36 lakh crore in 2025-26, compared to Rs 318.07 lakh crore in 2024-25, implying a growth rate of 8.9 per cent.

RBI Lowers GDP Forecast

Earlier in the morning, the Reserve Bank of India downgraded India's GDP growth projection to 6.6 per cent for FY27 from the earlier 6.9 per cent amid rising concerns due to elevated crude rates amid the West Asia conflict. The GDP growth forecast is revised for the second time in 2026.

Additionally, announcing the outcome of the MPC, the RBI governor said that the central bank also revised the inflation forecast for FY27 at 5.1 per cent from the earlier estimate of 4.6 per cent.

GDP Growth Forecast

RBI, in its June policy meeting, lowered GDP growth projections for the financial year 2026-27 (FY27) to 6.6 per cent. Earlier, the growth was forecasted at 6.9 per cent for the financial year. The revision came amid the rising impact of the Middle East crisis on growing economies due to elevated crude oil prices in the international market and disruptions to the Southwest monsoon.

Quarterly GDP Growth Forecast

Q1 Fy27- 6.6 per cent
Q2 FY 27- 6.3 per cent
Q3 Fy17- 6.5 per cent
Q4 Fy26 6.8 per cent in Q4

At the same time, India's GDP growth forecast for the last financial year--year ended on March 31, 2026-- is expected at 7.6%, the RBI governor said.

The RBI Governor said that domestic economic activity has remained largely stable since the outbreak of hostilities in the Middle East, as private consumption remains strong and fixed investment remains robust.

Malhotra said that the southwest monsoon will impact agriculture and rural demand; however, continued growth in services, the impact of GST, and stable employment will continue to support urban consumption.


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