India’s GDP Grows 7.8% in Q3 FY26 Under New 2022-23 Series: Manufacturing and Consumption Lead
- 27th February 2026
- 07:00 PM
- 3 min read
Summary
India’s economy expanded 7.8% year-on-year in the October–December quarter under the newly introduced 2022-23 base year series. The government has also revised full-year FY26 growth to 7.6%, supported by manufacturing and services momentum.Mumbai | February 27, 2026
India’s economy maintained strong momentum in the third quarter of FY26, with real Gross Domestic Product (GDP) growing 7.8% year-on-year, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
This marks the first GDP release under the revised 2022-23 base year series, replacing the earlier 2011-12 framework. The change aims to better reflect the structure of the post-pandemic economy and incorporate more updated data sources.
The Q3 growth of 7.8% compares with 6.2% in the same quarter last year and 8.2% in the previous quarter. Nominal GDP growth for the October–December period stood at 8.9%. Real Gross Value Added (GVA) was estimated at ₹77.38 lakh crore, registering similar growth.
FY26 Growth Estimate Revised Upward
Alongside the quarterly data, the government released the Second Advance Estimates for FY26. Real GDP growth for the full financial year is now projected at 7.6%, higher than the earlier estimate of 7.4% announced in January. The economy had grown 7.1% in FY25.
The upward revision reflects steady domestic demand, continued investment activity, and resilience in key sectors despite global uncertainties.
What the New GDP Series Means
The shift in base year from 2011-12 to 2022-23 updates the way India measures economic activity. Sectoral weights have been adjusted to better capture how the economy has evolved over the past decade.
The new series incorporates more contemporary datasets such as GST collections, e-Vahan vehicle registrations, and data from the Public Finance Management System (PFMS). Officials say this improves sectoral representation and provides a more granular picture of economic activity.
Back-series data under the revised framework is expected to be published later this year to allow for historical comparison.
Manufacturing and Services Drive Growth
Sectoral data shows that growth remained broad-based. Manufacturing performed strongly, while the services segment, including trade, hotels, transport and communication — continued to expand at a healthy pace.
Private consumption and capital formation also supported growth. Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) both grew above 7%, signalling stable domestic demand and ongoing investment momentum.
At the same time, nominal growth below 9% indicates relatively contained inflation pressures, which could influence corporate revenue growth and fiscal dynamics going forward.
The Road Ahead
With Q3 growth at 7.8% and full-year growth projected at 7.6%, India remains among the fastest-growing major economies globally. With growth holding above 7% and the base year now updated, economists will closely track how the revised data alters past growth comparisons and sector weights.
The next key milestone will be the release of Q4 FY26 data along with provisional full-year estimates, scheduled for May 29, 2026, which will offer clearer visibility on whether the current momentum is sustained into the next financial year.
More updates on India’s economy and markets will follow on PL Capital.
