FX.co ★ Indian GDP Grows More than Expected in Q4FY26

India’s real gross domestic product grew by 7.8% year-on-year in the March quarter of 2026, easing slightly from an upwardly revised 8% in the previous quarter but comfortably beating market expectations of 7.2%. The figures highlight India’s short-term resilience to higher energy prices and a weaker rupee, supported by efforts to diversify oil supplies away from Russia amid the outbreak of war in the Middle East.

Growth was driven by stronger output in manufacturing (7.3%); trade, hotels, transport, and communications (12.5%); financial and real estate services (10.4%); and construction (8.4%). These gains more than offset slower expansions in mining and quarrying (5.4%) and in agriculture and livestock (3.6%).

For the full 2026 financial year, India’s GDP grew by 7.7%, the fastest pace since the rebound from the Covid-19 pandemic-induced recession in FY2022.