The GDP revision improves measurement, says former chief statistician Pronab Sen, but raises questions on double deflation, consumption surge and fiscal maths
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
Earlier this month, the government revised its inflation series to better capture shifting spending patterns in the world's fastest-growing major economy
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
Moody's Ratings on Monday projected India's GDP to grow at 6.4 per cent in the next fiscal, the fastest pace among G-20 economies, driven by strong domestic consumption, policy measures, and a stable banking system. In its banking system outlook report, Moody's said their asset quality will remain resilient, with some stress among micro, small and medium enterprises (MSMEs). Regardless, banks have sufficient reserves to absorb loan losses, it said. The operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms, it said. "We forecast India's real GDP will grow 6.4 per cent for fiscal 2026-27, the fastest pace among G-20 economies, driven by strong domestic consumption and policy measures. "The rationalization of the goods and services tax (GST) in September 2025 and an earlier increase in personal income tax thresholds will help improve affordability for consumers and support consumption-led growth," Moody's said.
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
India weathered the Trump tariff shock better than expected, but high public debt and slower fiscal consolidation pose risks even as trade deals lift growth and investor sentiment
The markets were looking for a reason to rally, and they have got it now in the form of India-US trade deal. Once analysts and investors settle down, they will ask more questions (on the deal)
The organising idea is clear: India is no longer trying to grow fast; it is trying to grow well
Aditi Nayar analyses the Budget's fiscal prudence, higher public capex via states, a 4.3 per cent deficit target, debt consolidation, and the impact of higher gross borrowings on bond yields
The tough position that the bond market finds itself reflects a much more fundamental issue, of rising government bond supply chasing limited domestic savings pool
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
Key GDP and inflation metrics will be revised in February as MoSPI updates base years, meaning several assumptions underpinning Budget 2026 will be recalculated soon after the speech
Economic Survey 2025-26 flags stronger growth but warns that global uncertainty, fiscal discipline, and lower import protection are key to sustaining momentum
CEA V Anantha Nageswaran said that inflation is largely contained, rainfall and agricultural prospects are supportive, external liabilities remain low, and banks are in good health
On the whole, the Survey paints a positive picture for the economy as well as outlook, though cautions more on the external environment
Despite headline GDP growth, weak private capex and rising public borrowing are creating a government-led model that keeps credit scarce, raises rates, and threatens India's long-term growth momentum