India Reports GDP Growth Of 7.8% In Q4 On Services Sector Output Boost

India's economy outperformed market expectations in the fourth quarter of fiscal 2026, with real Gross Domestic Product (GDP) estimated to grow 7.8 per cent year-on-year, while full-year growth is pegged at 7.7 per cent, according to official data released today.

Real GDP at constant prices is estimated at Rs 87.77 lakh crore in Q4 of fiscal 2026, up from Rs 81.40 lakh crore in the corresponding quarter of the previous fiscal. Nominal GDP for the quarter is estimated at Rs 94.65 lakh crore, registering a growth of 9.1 per cent.

For the full financial year 2025-26, real GDP is estimated to attain Rs 323.12 lakh crore, compared with the First Revised Estimate of Rs 299.89 lakh crore in fiscal 25, reflecting a growth rate of 7.7 per cent. Nominal GDP is estimated at Rs 346.36 lakh crore, growing 8.9 per cent over the previous year.

Prime Minister Narendra Modi in a post on X said India's growth momentum remains strong, and the data reflects the inherent strength of India's economy, the success of reforms and the hard work of 140 crore Indians.

"We shall leave no stone unturned to further 'Ease of Living,' 'Ease of Doing Business' and increase opportunities for our youth," PM Modi said in a post on X.

India's growth momentum remains strong!

GDP growth rate of 7.7% in FY 2025-26 and 7.8% in Q4 of FY 2025-26 reflect the inherent strength of our economy, the success of reforms and the hard work of 140 crore Indians.

We shall leave no stone unturned to further 'Ease of Living,'…

— Narendra Modi (@narendramodi) June 5, 2026

Citing the economic growth numbers, the BJP took a swipe at Congress leader Rahul Gandhi over his comment warning of an "economic tsunami".

"The tsunami came and washed away his latest sinister attempt to malign India. The latest GDP data shows India growing at 7.7 per cent in FY 2025-26, the fastest among major economies," BJP leader Amit Malviya said in a post on X.

"The only tsunami visible today is the one drowning the Congress party's malignant thinking," he said.

Rahul Gandhi was warning of an "economic tsunami."

The tsunami came — and washed away his latest sinister attempt to malign India.

The latest GDP data shows India growing at 7.7% in FY 2025–26, the fastest among major economies.

Quarter after quarter, India held firm:

• 6.7%… pic.twitter.com/da9Nnueqn4

— Amit Malviya (@amitmalviya) June 5, 2026

Gross Value Added (GVA), a key measure of economic activity, is estimated to grow 7.9 per cent in fiscal 2026, while nominal GVA is projected to rise 9.1 per cent. In the fourth quarter, real GVA growth stood at 7.9 per cent, while nominal GVA expanded 9.9 per cent.

The data showed that the secondary and tertiary sectors remained the key drivers of growth. For fiscal 2026, the secondary sector is estimated to grow 8.8 per cent and the tertiary sector 9.3 per cent at constant prices. The primary sector registered growth of 3.2 per cent, supported mainly by agriculture and fisheries.

Manufacturing, trade, repair, hotels, transport, communication and services related to broadcasting, storage, as well as financial, real estate and professional services recorded double-digit growth during fiscal 2026 at both constant and current prices.

With inputs from ANI