According to an SBI Research report released in New Delhi on February 28, India’s revised GDP series indicates a larger economic size and highlights manufacturing as the primary growth driver. The report notes that while growth in Q3 FY2026 is estimated at 7.8%, structural revisions and better data coverage have significantly altered previous estimates.

BulletsIn

• Revised GDP data shows India’s economic size significantly higher than earlier estimates, reflecting improved methodology and expanded data coverage.
• Q3 FY2026 GDP growth estimated at 7.8%, compared to 8.4% in Q2 FY2026, indicating slight sequential moderation.
• Full-year FY2026 growth projected at 7.6%, marginally higher than earlier estimate of 7.4%.
• Several past years’ GDP numbers revised upward due to improved compliance, better corporate filings, and refined estimation techniques.
• Nominal GDP for FY2024 revised from 9.2% to 7.2%, while FY2025 growth raised from 6.5% to 7.1%.
• India’s nominal GDP for FY2023 now estimated at ₹261 lakh crore, compared to ₹161 lakh crore in FY2011-12, reflecting long-term expansion.
• FY2025 nominal GDP revised sharply upward from ₹188 lakh crore to ₹300 lakh crore under new calculations.
• Manufacturing identified as strongest-performing sector, driven by higher corporate margins and improved value-addition metrics.
• Manufacturing growth recorded 12.7% in FY2024 and estimated 11.5% in FY2026, reinforcing its role as growth engine.
• Quarterly manufacturing growth in FY2026 remained strong: 10.6% in Q1, 13.2% in Q2, and 13.3% in Q3.
• Services sector also showed steady expansion, with FY2026 growth estimated at 9%, up from 7.9% in FY2024.
• Trade, hotels, transport and communication services grew 11.2% in Q3 FY2026.
• Agriculture and allied sectors saw moderation, with FY2026 growth projected at 2.4%, lower than 4.2% in FY2025.
• Overall GVA growth in Q3 FY2026 stood at 7.4%, compared to 5.8% in the same quarter last year.