India’s economy expanded 7.8% year-on-year in the October-December quarter, easing from 8.4% previously, as officials unveiled a revised GDP data series.
The National Statistics Office now expects full-year growth of 7.6% for the fiscal year ending March, up from 7.4% under the old methodology.
Economists said the revamped series improves sector coverage, reduces distortions and better captures informal activity, leading to recalibrated historical data.
Services and manufacturing drove the quarter’s performance, supported by festive demand, rural recovery and indirect tax adjustments.
Analysts noted that while real GDP remains strong, nominal growth stays below 9%, tempering revenue expansion and profit momentum.
Stronger output improves prospects for equities and supports fiscal stability by bolstering tax collections and limiting deficit risks.
However, firmer demand and structural adjustments may complicate monetary policy, with some economists warning that rate cuts appear unlikely.
Overall, the revised data reinforce India’s resilient growth narrative, though future fiscal sustainability hinges on disciplined spending and sustained revenue gains.
