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India's economy grows at faster-than-expected pace of 7.8% in December quarter

India's economy grew 7.8% in Q3 FY26 with a new 2022-23 GDP base year amid strong manufacturing and services, while nominal GDP rose 8.9%, MoSPI reported.

  • On February 27, 2026, MoSPI reported India's Q3 FY26 real GDP grew 7.8% year-on-year with real GDP at ₹84.54 lakh crore.
  • The government shifted the GDP base year to 2022-23 from 2011-12 and overhauled the framework by incorporating Goods and Services Tax and e-Vahan records, using double deflation.
  • Sector data show the manufacturing sector grew 13.3% in Q3 FY26, the tertiary sector expanded 9.5%, and nominal GDP increased 8.9%.
  • The second advance estimate pegs FY26 real GDP growth at 7.6% and the Ministry of Statistics and Programme Implementation plans to publish a back series by December 2026.
  • The IMF had flagged India's data with a `C grade`, while Indian exporters faced 50% U.S. tariffs before an interim deal cut them to 18%.
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reportwire.in broke the news in on Friday, February 27, 2026.
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