India's GDP grows 7.8% in Q4, full-year growth rises to 7.7%
The GDP growth compares with 7% expansion a year back and 8% in the previous quarter
India's economy expanded 7.8 per cent in the January-March quarter, exceeding forecasts on strong domestic demand and government expenditure, before rising oil prices and supply-chain disruptions began clouding the outlook.
The GDP growth compared with 7 per cent expansion a year back and 8 per cent in the previous quarter. Full-year growth accelerated to 7.7 per cent from 7.1 per cent in FY25, supported by healthy consumption and robust investment activity.
The January-March period accounted for just one month of disruptions caused by the war in Iran. The spike in oil prices and the disruption in supplies from the Middle East -- a key source for India's crude oil, natural gas and LPG -- will be fully visible in the current April-June quarter.
The Reserve Bank of India has already cut its 2026-27 (FY27) GDP growth forecast to 6.6 per cent from 6.9 per cent, citing elevated energy and commodity prices and persistent supply-chain disruptions linked to the conflict in West Asia.
Chief Economic Adviser V Anantha Nageswaran said India could return to a growth rate of more than 7 per cent in FY28 if external conditions improve.
He said even if growth slows below 7 per cent in FY27, as projected by the RBI, policy measures aimed at preserving macroeconomic stability and ensuring adequate supplies could help the economy return to a growth trajectory above 7 per cent in FY28, provided external conditions improve.
