Provisional GDP estimates released on Friday show 7.7 per cent growth for 2025-26. The figure exceeds the government's February prediction by 0.1 percentage points. Outlook for 2026-27 points to a slowdown.
The National Statistical Office pegged fourth-quarter growth at 7.8 per cent. Services expanded nearly 10 per cent while manufacturing slowed. Full-year growth reached 7.7 per cent, the highest in three years. The Reserve Bank of India has projected 6.6 per cent growth for 2026-27. Higher energy prices and supply disruptions from the West Asia conflict weigh on expectations. The conflict, now in its fourth month, has interrupted a shaky ceasefire. Last week the government and RBI announced steps to attract foreign capital. These include removal of capital gains and withholding taxes on government bonds for foreign institutional investors. Analysts estimate potential inflows of 60-80 billion dollars over the next 12-18 months. Private consumption and investment grew faster than in the prior year. Agriculture growth slowed to 3 per cent. The services sector's share of gross value added rose to 54.3 per cent.
