The Ministry of Statistics and Programme Implementation released provisional national income estimates on 5 June 2026: real GDP grew 7.7% in FY 2025‑26 (up from 7.1% in FY25), with Q4 expansion of 7.8%, outperforming the Second Advance Estimate of 7.6% due to higher manufacturing output, construction activity and steady domestic consumption.
Key National Income Numbers
- GDP (base 2022‑23, constant prices): ₹323.12 lakh crore; nominal ₹346.36 lakh crore; real growth 7.7%.
- GVA: ₹294.40 lakh crore (constant); nominal ₹314.87 lakh crore; growth 7.9%.
- Per capita GDP: ₹2,27,065 (constant); growth 6.6%.
Demand‑side Drivers
- Private Final Consumption Expenditure: Grew 7.7% (previous year 5.8%).
- Gross Fixed Capital Formation: Grew 8.2% annually; Q4 GFCF at 10.8% (13‑quarter high).
Sectoral Performance
- Agriculture and allied: GVA growth 3.0% (prior year 4.2%); foodgrain output rose.
- Manufacturing & construction: Manufacturing posted double‑digit growth; construction increased with higher cement and steel consumption.
- Services: Contact‑intensive services 11.0%; financial, real estate & professional IT services 10.4%.
Statistical Methodology Changes
- Rebasing: Benchmark shifted from 2011‑12 to 2022‑23 in Feb 2026 national accounts.
- Double deflation: Applied for manufacturing and agriculture using item‑group price indices.
- New data integration: ASUSE, PLFS and GSTN included to better capture informal and gig activities.
- Multi‑activity allocation: Large firms’ revenues segmented by activity for classification.
IASPOINT Booster Facts
- Provisional Estimates (PE): Issued ~two months after fiscal year end; update Second Advance Estimates with full‑year industrial, agricultural and government accounts.
- GVA → GDP: GDP = GVA at basic prices + net product taxes (indirect taxes − subsidies); faster GVA growth than GDP implies relative decline in net product taxes or higher subsidies.
- Base year updates: Conducted periodically to reflect structural shifts, new goods/services and changing consumption patterns.