Economy expands 7.8% in Q3; manufacturing shines bright
The GDP revision improves measurement, says former chief statistician Pronab Sen, but raises questions on double deflation, consumption surge and fiscal maths
Discrepancies between the expenditure and production sides not completely wiped out
India's Second Advance GDP Estimates for FY26 signal strengthening private consumption, steady government spending and firmer investment momentum, reflecting shifts under the revised GDP series
One way to look at the new series is as a shift from a grainy image to a higher-resolution one. The scene itself does not suddenly change, but the blur is reduced
Overall, the 2022-23 base revision represents a substantive statistical reset
India's GDP grew 7.8% in Q3FY26 under the new series, slightly slower than earlier quarters, while full-year FY26 growth is estimated higher at 7.6% compared to 7.1% in FY25
India will shift GDP base year to FY23 and adopt price deflators and double deflation to improve accuracy, reflect structural shifts, and align national accounts with global standards
India's GDP could grow between 6.8-7.2 per cent in the next fiscal, EY Economy Watch report said on Thursday. It suggested that to attain the Viksit Bharat goal by 2047, India may have to increase its tax-GDP ratio largely by improvement of tax compliance as major tax reforms have already taken place. "In the background of India's extensive bilateral trade agreements with other major economies or economic groups, India's medium-term prospects have brightened up. We estimate India's real GDP growth to be in the range of 6.8-7.2 per cent in FY27," EY India Chief Policy Advisor D K Srivastava said. The EY Economy Watch report said that major tax reforms were undertaken in the current fiscal, in particular relating to personal income tax (PIT) and the GST. Both these reforms involved a considerable amount of revenue forgone aimed at increasing household disposable incomes so that private consumption demand could be supported. "These tax reforms involved considerable sacrifice of GoI's
The 16th Finance Commission opts for continuity over disruption, but its new devolution formula and scrapping of revenue-deficit grants raise key federal equity concerns
The POC stressed that excluding precious metals, underlying inflation pressures were muted and that barring volatility on account of gold and silver, core inflation was expected to remain range-bound
From shopping baskets to growth calculations, India is updating the base years for CPI inflation and GDP to reflect today's economy, a recalibration that will change headline numbers without altering
For long-term investors, such investments enhance productivity across sectors like manufacturing, services, logistics, and urban development
Budget's priority seems to be to reinforce India's long term growth narrative while maintain a tight balancing act as far as fiscal discipline is concerned.
Union Budget 2026 stays focused on fiscal prudence, targets a 4.3% deficit, sustains ₹12.2 trillion capex, and backs rare earths, freight corridors, waterways and data centres, writes Madan Sabnavis
Fiscal indiscipline at the state level casts a shadow on sovereign borrowing costs
Economic Survey projections and Budget assumptions on GDP growth have often missed the mark, with actual growth diverging from estimates in several years
Economic Survey 2025-26 signals an adjustment phase ahead, with moderate growth, stable inflation, fiscal consolidation and policy shifts shaping India's macro outlook
The IMF said India continues to anchor global growth, adding that recent economic data has outperformed expectations and could prompt a higher growth projection in its January review
It highlighted AI and possible resolution of trade disputes as upside risks