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India's Economy to Grow 7.6% in FY26, Fueling 'Viksit Bharat' Vision

The Indian economy is projected to grow by 7.6% in the 2025-26 financial year, signaling strong and sustained expansion. This revision is part of a significant update that shifts the GDP calculation's base year to 2022-23 to better reflect the modern economy. The overhaul integrates improved data and aligns with international frameworks like the UN's System of National Accounts. This comprehensive modernisation of India's statistical system aims to enhance transparency and provide a robust foundation for economic planning.

Key Points: India's GDP Growth Revised to 7.6% for FY 2025-26

  • GDP growth estimated at 7.6% for FY 2025-26
  • GDP base year revised to 2022-23
  • Statistical system aligns with UN's SNA 2008 framework
  • Modernisation includes CPI and IIP base year revisions
2 min read

Indian economy set to record strong and sustained expansion with revised GDP estimates

India revises GDP base year to 2022-23, projecting 7.6% growth for FY26, aligning statistics with global standards for Viksit Bharat.

"provides a more accurate, consistent and comprehensive measure of economic activity - official statement"

New Delhi, Feb 28

With real GDP now estimated to grow by 7.6 per cent in FY 2025-26, the Indian economy is set to record strong and sustained expansion, according to an official statement.

This robust performance reinforces India's growth momentum and strengthens its trajectory towards achieving the vision of 'Viksit Bharat', marked by higher productivity, resilience, and inclusive development.

To this accord, the revision of the GDP base year to 2022-23 marks a significant step in aligning India's national accounts with the realities of a rapidly transforming economy.

"By integrating improved data sources, strengthening methodological frameworks, expanding coverage of emerging sectors, and enhancing transparency through the SUT framework, the new series provides a more accurate, consistent and comprehensive measure of economic activity," according to the statement.

The Indian statistical system is moving towards higher standards of precision, comparability and global alignment. Together, these efforts strengthen the credibility of official statistics and reinforce their role as a robust foundation for informed policymaking and sustainable economic planning.

The statement further stated India compiles its GDP estimates in line with the 2008 System of National Accounts (SNA 2008), the internationally accepted statistical framework.

With the United Nations Statistical Division transitioning to SNA 2025- expected to be adopted globally around 2029-30- India intends to align with the updated standard in its next base year revision.

Additionally, as a subscriber to the IMF's Special Data Dissemination Standard (SDDS), India adheres to globally recognised benchmarks of statistical quality and transparency. The revised GDP series remains fully consistent with international statistical standards.

With base year for GDP estimates being revised to 2022-23, CPI base year being revised to 2024 and IIP being revised to 2022-23, India's statistical system is undergoing a comprehensive modernisation.

Continuing this momentum, the base year revision of WPI is also in progress. Until the updated WPI becomes available, the existing WPI will continue to be used as a deflator.

"Additionally, the MoSPI plans to incorporate the Producer Price Index (PPI) in the near future. PPI measures the rate of change in the prices of goods and services bought and sold by producers," said the statement.

- IANS

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Reader Comments

S
Sarah B
The numbers look promising, but I'm cautiously optimistic. We hear about strong GDP growth every quarter, yet the price of everyday groceries and fuel keeps pinching our household budget. The real test is whether this 'inclusive development' reaches ordinary families.
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Priya S
Aligning with global standards like SNA 2008 and planning for SNA 2025 is crucial for India's credibility on the world stage. It helps attract foreign investment when they trust our data. Good move by MoSPI!
R
Rohit P
Base year revision was long overdue. Our economy has changed so much since the last one, with digital services and startups playing a huge role. The new series should finally capture the true contribution of these new-age sectors. Jai Hind!
M
Michael C
As someone who analyzes economic data, the move to incorporate a Producer Price Index (PPI) is significant. It will give a much clearer picture of inflationary pressures at the wholesale level, beyond what WPI offers. A step towards more nuanced policymaking.
K
Kavya N
Strong GDP is good, but what about the ground reality for farmers and small shopkeepers? The article talks about 'Viksit Bharat' – I hope the development is not just in metros but also in tier 2/3 cities and villages. The growth needs to be balanced.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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