India’s Gross Domestic Product (GDP) grew by 7.7% in FY 2025-26

India’s Gross Domestic Product (GDP) grew by 7.7% in FY 2025-26

¨     India’s Gross Domestic Product (GDP) grew by 7.7% in FY 2025-26.

¨     The economy expanded by 7.8% in the fourth quarter (January–March 2026) of FY26.

¨     Reserve Bank of India (RBI) reduced its FY27 GDP growth forecast from 6.9% to 6.6% on 5 June 2026.

¨     The RBI increased its FY27 inflation forecast to 5.1%.

¨     Gross Domestic Product (GDP) measures the market value of all final goods and services produced within a country during a specific period.

¨     Real Gross Value Added (GVA) measures economic activity excluding the effects of taxes and subsidies.

¨     India’s Real GVA grew by 7.9% in FY26.

¨     The Monetary Policy Committee (MPC) of the RBI consists of six members.

¨     The MPC determines the policy repo rate under the Reserve Bank of India Act, 1934.

¨     On 5 June 2026, the MPC kept the repo rate unchanged at 5.25% and retained a neutral policy stance.

¨     India’s FY26 growth was supported by domestic demand, investment activity, manufacturing, construction, and services sectors.

¨     The RBI revised its FY27 growth projection downward due to West Asia conflict risks, rising energy prices, supply-chain disruptions, and weather-related uncertainties.

Exam Facts

¨     FY26 GDP Growth: 7.7%

¨     Q4 FY26 GDP Growth: 7.8%

¨     FY26 Real GVA Growth: 7.9%

¨     FY27 GDP Forecast (RBI): 6.6%

¨     FY27 Inflation Forecast (RBI): 5.1%

¨     Repo Rate: 5.25%

¨     MPC Members: 6

¨     Policy Stance: Neutral

¨     Growth Drivers: Domestic demand, investment, manufacturing, construction, and services.