Overview of Economic Performance
India’s economy demonstrated robust resilience throughout the 2025-26 fiscal year, recording a real GDP growth rate of 7.7 percent. This figure surpassed both the 7.1 percent growth seen in FY25 and the more conservative forecasts issued amid global volatility. The final quarter of the fiscal year provided a strong tailwind, with growth hitting 7.8 percent between January and March 2026, signaling that the nation’s momentum remained intact despite mounting external pressures.
Context and Global Headwinds
The achievement of 7.7 percent growth is particularly notable given the backdrop of the past year. Throughout FY26, the global economy grappled with persistent trade tensions, elevated energy prices, and significant geopolitical instability. While many international observers expected these factors to suppress domestic expansion, India’s internal demand and sectoral performance provided a necessary buffer against global economic headwinds.
Expert Perspectives on Growth Drivers
Chief Economic Adviser V. Anantha Nageswaran characterized the year as a
