India GDP Growth Surges to 7.6% in FY26: Manufacturing Boom Drives the Rebound

India's GDP growth for FY26 is estimated at 7.6%, driven by a robust manufacturing sector that expanded by 13.3% in the third quarter, according to the new GDP series with base year 2022-23 released by the Ministry of Statistics.

The strong numbers came as a pleasant surprise to economists who had projected growth of 6.8-7.0%. Private consumption, which accounts for nearly 58% of GDP, grew at 8.1% — the highest in three years — buoyed by festive season spending and a resilient rural economy.

Fitch Ratings has revised India's growth projection upward to 7.5% for the fiscal year, noting that "India's domestic demand story remains intact despite global headwinds." The agency highlighted India's infrastructure spending pipeline, including the Noida airport, Bullet Train corridor, and the PM Gati Shakti logistics network, as key growth multipliers.

The Reserve Bank of India maintained the repo rate at 6.25%, signalling confidence in the growth trajectory while keeping a watchful eye on food inflation, which remained elevated at 5.2% in February.