India's Gross Domestic Product grew at 7.4% in the January-March quarter of FY26, beating the consensus analyst estimate of 7.1%, according to data released by the Central Statistics Office. The full-year GDP growth for FY26 came in at 7.2%, making India the fastest-growing major economy for the third consecutive year.
The strong quarterly performance was underpinned by a 9.1% expansion in manufacturing output and an 8.4% growth in the services sector. Capital formation grew at a robust 11.2%, reflecting both government capex spending and a revival in private investment. Agriculture grew at a steady 4.2% on the back of good rabi output.
Finance Minister Nirmala Sitharaman called the data a validation of India's structural growth story. Economists noted that with inflation under control and the external account stable, the economic outlook for FY27 remains broadly positive. The IMF has revised India's FY27 growth forecast to 7.1%.
