India's real Gross Domestic Product (GDP) grew 7.8% year-on-year in the fourth quarter (January–March) of FY26, while full-year FY26 growth came in at 7.7%, according to official data released on June 5, 2026. The figure beat market expectations of around 7.3% and accelerated from 7.1% in FY25, driven by strong manufacturing, services and investment demand despite West Asia tensions and global headwinds.
Key Facts & Details
8 points- 1Q4 FY26 (Jan–Mar 2026) real GDP growth: 7.8% year-on-year.
- 2Full-year FY26 real GDP growth: 7.7%, up from 7.1% in FY25.
- 3Growth beat market expectations of roughly 7.3%.
- 4Manufacturing, services and investment demand were key drivers.
- 5Data released the same day as the RBI's June 2026 monetary policy.
Deep Dive
- +Manufacturing posted double-digit real GVA growth for the full year.
- +Trade, hotels, transport & communication and financial/real-estate services also grew in double digits.
- +The RBI projected slower FY27 growth of 6.6% amid global uncertainty.
Exam Focus
What was India's GDP growth rate in Q4 FY26 and for the full financial year 2025-26?
Exam Relevance & Angle
Quarterly and annual GDP growth figures are core macroeconomic data frequently tested in banking and UPSC exams and signal the economy's momentum.
Target Exams
Background & Context
GDP measures the total value of goods and services produced in the economy. India's National Statistics Office releases quarterly estimates. FY26 covers April 2025 to March 2026.
Test Yourself
1 / 2India's real GDP growth in Q4 (Jan–Mar) of FY26 was:
Source
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