India’s GDP growth rate better than expected, rising 7.8% in the third quarter
According to the latest data released by the Ministry of Statistics and Program Implementation (MoSPI), India’s economy grew at a rate of 7.8 percent in the quarter ended December. This growth rate is significantly higher than the average estimate of 7.2% by experts and economists, reflecting the country’s strong economic fundamentals.
Impact of the New GDP Series
The government recently changed the base year for GDP calculations from 2011-12 to 2022-23. This new series aims to reflect the current changing picture of the economy, especially the digital economy, e-commerce, and emerging services sectors. The new methodology has increased accuracy and comprehensiveness in data collection, leading to this surge in growth figures.
Manufacturing and Mining Sectors Shine
Looking at sector-wise performance, the manufacturing sector has performed the best, registering double-digit growth of 13.3 percent. The central government’s PLI schemes and heavy spending on infrastructure have given a new impetus to industrial activity. Furthermore, the mining sector has grown by 4.7%.
Status of Agriculture and Services
However, the agricultural sector has seen a decline in growth. This year, agricultural growth has declined to 1.4% compared to 5.8% in the same period last year, primarily due to irregular monsoon and unseasonal rains. On the other hand, the construction and services sectors have maintained their strong foothold.
Revised Estimates for the Full Year
Following these encouraging third quarter figures, the government has revised the growth forecast for the full financial year 2025-26 to 7.6%. Previously, the estimate was 7.4%. Additionally, the previous quarter (July-September) figures have been revised from 8.2% to 8.4%.
Economists believe that this 7.8% growth rate firmly establishes India as the world’s fastest-growing major economy, despite global challenges and rising interest rates. Improving domestic demand and government investment remain key pillars of this growth.
