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India’s GDP growth slows to 7.8% in October-December quarter after base year revision
India’s gross domestic product growth slowed to 7.8% in the October-December quarter of the 2025-’26 financial year, down from 8.4% in the previous quarter, data released by the Centre on Friday showed.
The figures were released alongside the Ministry of Statistics and Programme Implementation revising the base year of national accounts to 2022-’23 from 2011-’12.
The government said that the revision expands data sources and improves estimation methods to better reflect changes in the economy.
The revision follows an assessment by the International Monetary Fund in November. The international financial institution had given India’s national accounts a “C” rating while also flagging the outdated base year.
For the financial year ending in March, the government said that it expects the economy to grow by 7.6%, compared to the 7.4% growth forecast under the old data series, the National Statistics Office said on Friday.
Under the news series, the real gross domestic product is projected at Rs 322.5 lakh crore in 2025-’26, up from Rs 299.8 lakh crore in 2024-’25.
Nominal gross domestic product is estimated to grow by 8.6% in the upcoming financial year.
Real GDP measures the value of goods and services produced in the economy after adjusting for inflation. It shows how much actual output has increased.
Nominal GDP measures the value of goods and services at current market prices, without adjusting for inflation. It shows both growth in output and changes in prices.
With these projections, India remains the fastest-growing major economy globally, Reuters reported.
While presenting the Budget for 2026-’27 earlier this month, the government had estimated nominal growth for the next financial year at 10% under the old base year.
India has faced economic uncertainty due to tariffs introduced by United States President Donald Trump, which have weighed on exports, Reuters reported.
In April, Trump imposed the tariffs on dozens of countries, including India, claiming high tariffs the countries imposed on US goods. The levies were eventually reduced once bilateral trade deals had been agreed to, including in the case of India.
On February 2, New Delhi and Washington had agreed on a framework for the deal.
Under the agreement, US tariffs on Indian goods would have been reduced to 18% from a combined rate of 50%.
On February 20, after the Supreme Court struck down his tariffs, Trump imposed a temporary 10% tariff on goods imported into the US, citing his authority under the 1974 Trade Act.
The new tariff is for a maximum of 150 days, unless the US Congress approves an extension. This left the status of recent trade deals with other countries, including India, unclear.
On February 21, Trump said that he was also increasing the global tariffs to the “fully allowed, and legally tested” level of 15% from 10% with immediate effect.
However, it is unclear as to when the increased tariff rate would take effect as only the original 10% rate announced by the White House came into force on Tuesday.
Source: Scroll
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