New GDP series upgrades FY26 growth to 7.6%
What’s in the news?
- India’s economic growth is expected to touch 7.6% in the current financial year 2025- 26 as per the second advance estimates of GDP based on the new and updated series.
- This is faster than the 7.4% predicted in the first advance estimates for 2025-26 released in January, which was based on the older series.
- The new series has revised downward the growth for 2023-24 to 7.2% from the 9.2% estimated in the old series, and has revised upward the growth for 2024-25 to 7.1% from the earlier estimate of 6.5%.
- According to the new data, India’s nominal GDP — which is essentially the size of the economy — has been revised downward for the three years spanning 2023-26.
- The data in the new series shows that the size of the economy is expected to be ₹345.47 lakh crore in 2025-26, which is about 3.3% smaller than what was predicted in the first advance estimates based on the old series.
- Further, the size of the economy in both 2023-24 and 2024 25 has been revised downward by 3.8% each.
- Since the fiscal deficit is calculated as a share of GDP, a lower GDP base automatically pushes the ratio up, raising the 2025‑26 (RE) fiscal deficit estimate from 4.36% to 4.51% of GDP even though the deficit amount itself is unchanged.
- Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing.