India’s economy maintained strong momentum in the October–December quarter of FY 2025-26, with official figures showing a healthy expansion under a newly revised GDP calculation system.

Fresh data released by the Ministry of Statistics and Programme Implementation (MoSPI) shows that the country’s Gross Domestic Product (GDP) grew by 7.8 per cent in the third quarter. This marks an improvement compared to the 7.4 per cent growth recorded during the same period last year.

The new numbers are based on a revised national accounts series that uses 2022-23 as the new base year, replacing the earlier 2011-12 base year.

Why the Base Year Has Changed

Updating the base year helps reflect structural changes in the economy. According to officials, base revisions are normally conducted every five years. However, this exercise was delayed due to the Covid-19 pandemic and the rollout of the Goods and Services Tax (GST) system.

The new series aims to better capture modern economic activity, digital transactions, and shifts in consumption patterns.

Under the revised estimates:

• Full-year GDP growth for FY26 is now projected at 7.6 per cent, higher than the earlier advance estimate of 7.4 per cent.

• The July–September quarter growth has been revised upward to 8.4 per cent from 8.2 per cent.

• However, April–June quarter growth was adjusted downward to 6.7 per cent from 7.8 per cent.

What’s New in the GDP Calculation?

The updated GDP framework includes several new data sources to improve accuracy:

• GST data to better measure corporate and state-level economic activity

• e-Vahan vehicle registration data to capture transport sector performance

• Household services such as cooks, drivers, and domestic help

• Annual surveys like ASUSE (Annual Survey of Unincorporated Sector Enterprises)

• Periodic Labour Force Survey (PLFS) for better workforce estimates

Officials said GST data will also help distribute private corporate sector estimates across states more precisely.

What It Means for the Economy

The improved growth numbers suggest that domestic demand, services activity, and formal sector performance remain strong. Economists believe that incorporating real-time tax and labour data may provide a clearer and more transparent picture of India’s economic health.

The government has indicated that back-series data under the new methodology will be released by December 2026.

With stronger quarterly numbers and revised annual projections, India continues to position itself among the fastest-growing major economies globally.