A transformative update to India’s GDP measurement is reshaping perceptions of its economic might. According to SBI Research, the new series not only amplifies the economy’s scale but crowns manufacturing as the primary growth driver amid nuanced quarterly shifts.
FY26 Q3 expanded by 7.8%, easing from Q2’s 8.4%, with annual growth forecasted at 7.6% over the old 7.4%. Revisions adjust FY24 to 7.2% from 9.2% and boost FY25 to 7.1% from 6.5%.
Absolute GDP leaps are monumental: FY23 real GDP now ₹261 lakh crore (previously ₹161 lakh crore), FY25 ₹300 lakh crore (previously ₹188 lakh crore). This reflects broader coverage, double deflation in manufacturing, and advanced indices.
Manufacturing dominates with FY24 growth at 12.7% and FY26 at 11.5%. Consecutive double-digit quarters in FY26—10.6%, 13.2%, 13.3%—highlight precise value capture via double deflation.
Services remain robust, projected at 9% for FY26 (7.9% in FY24), Q3 at 9.5% exceeding prior periods, led by 11.2% in finance, real estate, IT, and professional services.
Agriculture softens to 2.4% in FY26 from 4.2% in FY25, Q3 at 1.4% versus 5.8% last year, attributable to base impacts.
This methodological overhaul provides sharper economic visibility. Manufacturing’s stellar run, supported by services, underscores industrial momentum. Strategic focus on agriculture could ensure inclusive growth, positioning India for global leadership.