New GDP Series: FY26 Growth Estimated at 7.6%
Why in the news
The Government published Second Advance Estimates of GDP on a revamped national accounts series. FY 2025-26 growth now looks stronger than earlier projections.
Key facts
- FY 2025-26 growth estimate: 7.6%.
- First Advance Estimate (January, old series): 7.4%.
- New base year: 2022-23, replacing 2011-12.
- Series brings better methods and more data sources for accuracy and detail.
Growth revisions
| Year | Old series | New series |
|---|---|---|
| FY 2023-24 | 9.2% | 7.2% (down) |
| FY 2024-25 | 6.5% | 7.1% (up) |
| FY 2025-26 | 7.4% (First Advance) | 7.6% (Second Advance) |
Concerns
- Nominal GDP, the size of the economy, was cut for 2023-26.
- A smaller denominator can make the fiscal deficit-to-GDP ratio look worse.
- The debt-to-GDP ratio may also look worse.
Exam angle
- New base year: 2022-23; old: 2011-12.
- FY26 growth: 7.6%.
- Estimate type: Second Advance Estimates.