India's economic growth accelerated in 2025-26, with the economy expanding 7.7% compared with 7.1% in the previous year, government data released on Friday showed. Growth, however was lower sequentially in the final quarter of the fiscal year, with GDP rising 7.8% in the January-March period.The country revised its third quarter economic growth figure to 8%.India is now reporting in the new gross domestic product (GDP) series, following the recent revision of the inflation basket, adopting 2022–23 as the new base year and introducing updated back-series data as part of a broader effort to better capture post-pandemic consumption shifts and the rapid expansion of the digital economy.This is the second print ​under revised ​national ⁠account data that updated the base year and widened ​sources.Inflation-adjusted GDP rose to Rs 87.77 lakh crore from Rs 81.40 lakh crore a year earlier. In nominal terms, which includes the impact of prices, GDP expanded 9.1% to Rs 94.65 lakh crore.Gross value added (GVA), a measure of economic activity across sectors, rose 7.9% in real terms during the quarter to Rs 80.18 lakh crore from Rs 74.32 lakh crore a year ago. Nominal GVA grew 9.9% to Rs 86.46 lakh crore."The 4Q GDP came in higher than expected given the robust private consumption and investment. Going ahead, however, we remain wary on the headwinds from the geopolitical and ElNino led supply side shocks. Tightening financial conditions, higher inflation and weak monsoons could weigh across urban and rural demand. We expect GDP to hover in the 6-6.3% range, depending on how these risks play out," said Upasna Bharadwaj, chief economist, kotak Mahindra BankUpasna Bharadwaj, chief economist, Kotak Mahindra Bank. "The 4Q GDP came in higher than expected given the robust private consumption and investment. Going ahead, however, we remain wary on the headwinds from the geopolitical and ElNino led supply side shocks. Tightening financial conditions, higher inflation and weak monsoons could weigh across urban and rural demand. We expect GDP to hover in the 6-6.3% range, depending on how these risks play out," Bharadwaj added. Furthermore, for the full-year India's economy is estimated to have grown 7.7% in FY26, with inflation-adjusted GDP rising to Rs 323.12 lakh crore from Rs 299.89 lakh crore in FY25. The growth rate marks an improvement from 7.1% recorded in the previous financial year.In nominal terms, which includes the impact of inflation, GDP is estimated to have expanded 8.9% to Rs 346.36 lakh crore in FY26 from Rs 318.07 lakh crore a year earlier.Earlier in the day, the Reserve Bank of India (RBI) reduced its growth forecast for FY27 to 6.6% from 6.9% in its policy announcement, citing rising global uncertainties linked to the ongoing conflict in West Asia.The central bank now expects GDP growth of 6.6% in the first quarter, 6.3% in the second quarter, 6.5% in the third quarter and 6.8% in the fourth quarter of FY27.