India's economy grows 7.8% in Q4 FY26; full-year FY26 growth at 7.7%
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?
Related Topics
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.
Related GK Concepts
Must KnowTest Yourself
1 / 2India's real GDP growth in Q4 (Jan–Mar) of FY26 was:
Source
This topic is important for:
