Revised GDP Series Points to Larger Economy, Stronger Manufacturing: SBI Research

New Delhi: India’s newly revised GDP series indicates not only a larger economic base but also underscores the growing strength of manufacturing as a key engine of growth, even as GDP expansion moderated to 7.8 per cent in the third quarter of FY26, according to a report by SBI Research.

Data compiled by SBI Research show that India’s economic growth slowed to 7.8 per cent in Q3 FY26 from 8.4 per cent in the previous quarter under the revised GDP series. For the full financial year FY26, growth is now estimated at 7.6 per cent, marginally higher than the 7.4 per cent projected earlier under the old series.

The report highlighted that while certain annual growth figures have been adjusted, the overall size of the economy has expanded significantly with the adoption of a new base year, reflecting better data coverage and improved estimation methods.

Growth for FY24 has been revised down to 7.2 per cent from 9.2 per cent earlier, while FY25 growth has been revised upward to 7.1 per cent from 6.5 per cent. More notably, real GDP levels have seen a sharp upward revision. FY23 real GDP is now pegged at Rs 261 lakh crore compared to Rs 161 lakh crore under the 2011–12 series, while FY25 real GDP has been revised to Rs 300 lakh crore from Rs 188 lakh crore earlier.

SBI Research attributed the jump in GDP levels to enhanced data coverage, the adoption of double deflation in manufacturing, and the use of more granular price indices.

Manufacturing has emerged as the standout performer in the revised series, posting double-digit growth of 12.7 per cent in FY24 and 11.5 per cent in FY26. In FY26, the sector has recorded double-digit expansion across all three quarters so far—10.6 per cent in Q1, 13.2 per cent in Q2 and 13.3 per cent in Q3—reflecting improved measurement of value addition through double deflation.

The services sector has also maintained strong momentum, with growth estimated at 9 per cent in FY26 compared to 7.9 per cent in FY24. In Q3 FY26 alone, services expanded by 9.5 per cent, up from 9.3 per cent in Q2 and 8.2 per cent in the corresponding quarter last year. Financial, real estate, IT and professional services recorded a robust 11.2 per cent growth in the third quarter.

In contrast, agriculture and allied activities showed some moderation. The agriculture, livestock, forestry and fishing sector is estimated to grow 2.4 per cent in FY26, lower than 4.2 per cent in FY25. In Q3 FY26, the sector expanded by 1.4 per cent, down from 5.8 per cent in the same quarter last year, possibly due to base effects.

With inputs from IANS