India’s shift towards deeper integration in global value chains includes updating base years regularly, with the latest update reflecting the government’s commitment to data-driven policy responses to global economic shocks. The new real GDP estimate for FY 2025-26 stands at Rs 322.58 lakh crore, indicating a growth rate of 7.6% compared to the previous year.
Moreover, the nominal GDP for 2025-26 is projected at Rs 345.47 lakh crore, showing an 8.6% growth rate. The revised GDP framework is expected to enhance the credibility and analytical utility of India’s national accounts statistics, offering a more precise economic activity overview.
The updated methodology integrates various data sources like GST statistics, listed companies’ financial results, transport indicators, and digital administrative data. This comprehensive data coverage aims to improve the measurement of economic output, consumption, investment, and sectoral contributions, positioning India for future growth.
The improved statistical measurements are set to bolster data-driven policymaking and aid in better economic planning. This move is seen as a positive step by foreign investors eyeing India’s growth prospects, as it provides reliable and internationally comparable data, potentially boosting private investment-led growth.
According to ICRA Ltd’s Chief Economist, Aditi Nayar, the manufacturing GVA has shown double-digit growth for the fifth consecutive quarter in Q3 FY2026, while services GVA growth has reached a 7-quarter high of 9.5%. ICRA anticipates a possible pause in policy rate changes due to expectations of a rise in CPI inflation in the near future.
