India’s GDP Growth at 7.8% in Q3 FY26; FY27 Growth Projected at 7.2%: CareEdge Ratings

India’s economic growth remained strong in the third quarter of FY26, supported by robust performance in the manufacturing and services sectors, according to the latest GDP update released by CareEdge Ratings.

India’s GDP growth for the third quarter of FY26 stood at 7.8%, slightly lower than the 8.4% recorded in Q2 FY26, according to the latest GDP update released by CareEdge Ratings.

The report stated that the overall economic momentum remains strong, driven primarily by manufacturing and services sector growth. As per the Second Advance Estimate, India’s full-year GDP growth for FY26 is projected at 7.6%, higher than the earlier estimate of 7.4%.

CareEdge also noted that the implied GDP growth for Q4 FY26 is estimated at around 7.3%, indicating continued stability in economic activity during the final quarter of the fiscal year.

On the expenditure side, private consumption remained strong, growing by 8.7% in Q3, supported by GST rate rationalisation, policy rate cuts by the RBI, and stable inflation trends. Investment activity also remained healthy despite some moderation in government capital expenditure.

However, the report highlighted that nominal GDP has been revised downward to ₹345.5 trillion for FY26, compared with the Union Budget estimate of ₹357.1 trillion. This revision may slightly increase the government’s fiscal deficit ratio to around 4.5% of GDP, marginally higher than earlier estimates.

Looking ahead, CareEdge Ratings projects India’s GDP growth at around 7.2% in FY27. While domestic consumption and government-led capital expenditure are expected to support growth, the agency cautioned that global geopolitical developments, trade policy shifts, and potential weather disruptions such as El Niño could pose risks to the outlook.

Read Detailed Report Here:

https://tvc.s3.ap-south-1.amazonaws.com/GDP_Update_-_Q3_FY26.pdf