India's economy expanded at 7.8% year-on-year in the December quarter, government data shows, underscoring robust momentum amid global headwinds. Driven by manufacturing revival and festive demand, this beat estimates and signals FY26 above 7% trajectory. Markets eye sustained capex for rating upgrades
India's economy expanded at 7.8% year-on-year in the December quarter, government data shows, underscoring robust momentum amid global headwinds. Driven by manufacturing revival and festive demand, this beat estimates and signals FY26 above 7% trajectory. Markets eye sustained capex for rating upgrades. (42 words)
Growth Breakdown
The National Statistics Office reported Q4 FY26 GDP growth at 7.8% YoY, accelerating from prior quarters and surpassing consensus forecasts of 6.8-7.2%. Real GDP reached ₹45.2 lakh crore, with Gross Value Added (GVA) up 7.6%. This caps FY25 at ~7.2% overall.
Key Highlights
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Sector Stars: Manufacturing +10.2%, construction +9.8%; services steady at 7.1%.
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Sequential Rise: Q3 was 7.2%; Q2 at 6.7% – clear upward trajectory.
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Per Capita: Up 6.5% YoY to ₹2.4 lakh; nominal GDP +9.2%.
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Global Context: Outpaces China's ~5% est., world's fastest major economy.
Implications
Govt hails reforms; RBI may pause cuts amid inflation. Infra spend, PLI schemes fuel outlook. Risks: oil volatility, monsoons. FY26 projections 7.0-7.5% viable.
Sources: Ministry of Statistics (MOSPI), Economic Times, Reuters