India's GDP Growth Slows to 7.8% Amid Economic Revisions

India's GDP growth has decreased to 7.8% in the October-December quarter of the 2025-2026 fiscal year, down from 8.4% previously. This change comes alongside a revision of the national accounts base year to 2022-2023, aimed at improving data accuracy. The government anticipates a 7.6% growth for the fiscal year ending in March. Despite facing economic challenges, including tariffs from the U.S., India remains the fastest-growing major economy globally. Explore the details of these economic shifts and what they mean for the future.

By Narendra Chaudhary Feb 27, 2026, 21:19 IST

Economic Growth Update

In the October-December quarter of the 2025-2026 fiscal year, India's gross domestic product (GDP) growth has decreased to 7.8%, a decline from 8.4% in the previous quarter, according to data released by the government on Friday.

This data coincides with the Ministry of Statistics and Programme Implementation's decision to update the base year for national accounts from 2011-2012 to 2022-2023.

The government indicated that this revision enhances data sources and improves estimation techniques to more accurately reflect economic changes.

This update follows an evaluation by the International Monetary Fund (IMF) in November, which had rated India's national accounts with a “C” grade, highlighting the need for a more current base year.

For the fiscal year ending in March, the government anticipates the economy will grow by 7.6%, an increase from the previous forecast of 7.4% based on the old data series, as reported by the National Statistics Office.

According to the new series, the real GDP is expected to reach Rs 322.5 lakh crore in 2025-2026, up from Rs 299.8 lakh crore in 2024-2025.

Nominal GDP is projected to rise by 8.6% in the upcoming fiscal year.

Real GDP reflects the value of goods and services produced after adjusting for inflation, indicating actual output growth.

In contrast, nominal GDP measures the value of goods and services at current market prices without inflation adjustments, showing both output growth and price changes.

Earlier this month, while presenting the Budget for 2026-2027, the government estimated nominal growth for the next fiscal year at 10% based on the previous base year.

India's economy has faced challenges due to tariffs imposed by the United States, which have impacted exports.

In April, the U.S. President introduced tariffs on several countries, including India, citing high tariffs imposed by those nations on U.S. goods. These tariffs were later reduced following the establishment of bilateral trade agreements, including with India.

On February 2, New Delhi and Washington reached an agreement on a framework for a trade deal.

This agreement proposed reducing U.S. tariffs on Indian goods from a combined rate of 50% to 18%.

Following a Supreme Court ruling that invalidated his tariffs, the U.S. President imposed a temporary 10% tariff on imports into the U.S., invoking his authority under the 1974 Trade Act.

This new tariff is set for a maximum duration of 150 days unless extended by Congress, leaving the status of recent trade agreements, including with India, uncertain.

On February 21, the President announced an increase in global tariffs to 15% from 10%, effective immediately.

However, it remains unclear when this increased tariff rate will take effect, as only the original 10% rate was implemented on Tuesday.