India's economic growth reached 7.8% in October–December after data revision

The Indian economy recorded growth at a rate of 7.8% year-on-year in the third quarter of the fiscal year, indicating a slight slowdown relative to previous quarters but still remaining at a very high level. The data for the October–December period, published by Indian statistical authorities, are the first following a significant revision of historical data series. The aim of this revision, the first since 2011, is to better reflect changes in the country's economic structure and the weight of modern sectors such as financial or technological services. Bloomberg points out that the consequence of this methodological change is a lowering of historical growth estimates. This means the actual size of the Indian economy may be somewhat smaller than previously thought. Consequently, the path to overtaking Japan's economy and advancing to fourth place in the global ranking by nominal GDP size may lengthen. However, this does not change India's long-term growth trajectory, which remains among the fastest in the world. Reuters analysts note that although growth in the last quarter was slightly below the forecasted 7.9%, private consumption remained a strong driving force, indicating the resilience of domestic demand. Since the liberalization of the economy in the early 1990s, India has maintained an impressive growth rate, becoming one of the key driving forces of the global economy. Over the last decade, it has recorded average annual GDP growth exceeding 6–7%, systematically reducing the gap to the world's largest economies.Simultaneously published fiscal data show that the fiscal deficit during the first ten months of the 2025/26 fiscal year (from April to January) reached 63% of the annual target, set at 5.3% of GDP. This pace of spending suggests the government is on track to stay within the established fiscal limits, despite significant outlays on social programs and infrastructure investments that support growth. Macroeconomic stability, expressed through a controlled deficit, is a key factor attracting foreign investors. „The new methodology likely reflects reality more accurately, but it also means the starting point for future growth is lower.” (The outlook for the coming quarters remains optimistic, albeit somewhat more subdued compared to earlier forecasts. Some sources, such as Bloomberg, suggest that after the full implementation of the new estimation methodology, India's actual economic growth in the coming years may turn out to be even higher than the currently reported figures. Further public and private investments, as well as the global economic climate affecting exports, will be crucial for maintaining momentum.) — Bloomberg EconomicsThe outlook for the coming quarters remains optimistic, albeit somewhat more subdued compared to earlier forecasts. Some sources, such as Bloomberg, suggest that after the full implementation of the new estimation methodology, India's actual economic growth in the coming years may turn out to be even higher than the currently reported figures. Further public and private investments, as well as the global economic climate affecting exports, will be crucial for maintaining momentum. 7.8% — India's GDP growth in Q3 of the fiscal year