India recorded a robust 7.8 per cent growth in Gross Domestic Product (GDP) for the third quarter of FY26, according to data released under the revised GDP series.
The latest figures indicate strong momentum in economic activity, driven by manufacturing, construction and services sectors.
The updated methodology offers a more refined measurement of economic output, aligning data assessment with evolving global standards and domestic structural changes.
Manufacturing emerged as a key driver during the quarter, supported by improved industrial output and steady domestic demand. The services sector, particularly trade, hospitality, financial services and real estate, also posted healthy growth, reflecting sustained consumer activity and investment flows.
Construction activity remained buoyant, aided by infrastructure spending and housing demand, contributing significantly to overall expansion.
Gross Fixed Capital Formation (GFCF), a measure of investment, showed steady growth, signalling business confidence and continued capital expenditure. Private consumption expenditure also improved, supported by stable rural demand and urban spending.
Government expenditure played a supportive role, particularly in infrastructure and welfare-driven spending.
The revised GDP series incorporates updated base year calculations and improved data collection methods to better reflect the structure of the modern economy. Officials from the Government of India stated that the new series enhances accuracy and transparency in economic reporting.
Outlook Remains Positive
Economists note that the strong Q3 performance places India among the fastest-growing major economies globally. However, global uncertainties, commodity price fluctuations and geopolitical tensions remain key risks going forward.
With steady domestic demand and policy support, growth momentum is expected to continue into the final quarter of FY26, reinforcing confidence in the country’s medium-term economic outlook.