India set to be $4 trillion economy in FY26: GDP in seven charts

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• India's GDP grew 7.3% in FY26, nearing $4 trillion in nominal terms.
• Manufacturing and services drove growth, while agriculture and mining slowed
• Nominal GDP growth dipped to 8 percent, challenging fiscal consolidation efforts

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India’s economy closed FY26 with growth firmly above the 7 percent mark, underlining the resilience of the post-pandemic expansion even as global conditions remained uneven. Real GDP growth accelerated to 7.3 percent in FY26, up from 6.5 percent in FY25.

At Rs 89.5 to a dollar, Goldman Sachs’ estimate for the rupee at the end of March, the economy is expected to end FY26 at about the $4 trillion mark.

On the supply side, manufacturing emerged as a key driver of acceleration in FY26, with growth rising to 7.0 percent from 4.5 percent in FY25. Services provided the strongest momentum. Financial, real estate and professional services expanded 9.9 percent, while trade, hotels, transport and communication grew 7.5 percent. Public administration and defence also recorded near double-digit growth, reinforcing overall GVA expansion to 7.3 percent.

In contrast, agriculture moderated to 3.1 percent, and mining slipped into contraction.

Despite robust real growth, nominal GDP growth slowed to 8 percent in FY26, down from nearly 10 percent in FY25

Slower nominal expansion limits the revenue buoyancy that helps fiscal consolidation. As a result, maintaining deficit reduction targets will require tighter expenditure management and continued efficiency gains, even as growth remains strong in real terms.

Here’s GDP in seven charts:

India's economy logged 7%+ growth in FY26

Turning it into a $4 trillion economy in nominal terms

As manufacturing, investment and services drove expansion

Investment share has risen to highest level in 13 years

Tertiary sector now accounts for over half of the economy

But nominal growth dips, making fiscal consolidation a close call

India's economy logged 7%+ growth in FY26

Turning it into a $4 trillion economy in nominal terms

As manufacturing, investment and services drove expansion

Investment share has risen to highest level in 13 years

Tertiary sector now accounts for over half of the economy

But nominal growth dips, making fiscal consolidation a close call