India’s Q3 GDP Grows 7.6% Under New Data Series, Matching Estimates
India’s economy grew by a strong 7.6% during the October to December quarter of the current financial year. This is according to the first set of data released by the government under its new system for calculating national output.
This GDP growth matches the 7.6% estimate predicted by economists surveyed by Bloomberg. Despite global trade tensions and political challenges, India remains one of the fastest-growing major economies in the world.
Understanding the New GDP Base Year
The government has updated the GDP base year from 2011-12 to 2022-23. This change was made to better reflect current production and demand patterns across the country.
In the second quarter of FY26, the economy grew by 8.2%, even with the impact of US tariffs. During the most recent quarter, lower inflation helped keep the gap between nominal and real growth rates small. As a result, the nominal GDP grew by 8.9%.
Steady Performance in Gross Value Added (GVA)
The Gross Value Added (GVA) which measures the value of goods produced minus the cost of raw materials remained steady at 7.8%.
Why the Base Year Was Revised
Base year revisions are necessary to keep economic data accurate. These changes allow the government to:
- Capture structural shifts in the economy.
- Include the latest and most reliable data sources.
- Improve the way growth is estimated.
- Provide a more accurate picture of the nation’s financial health.
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