New Delhi, February 27: India’s Gross Domestic Product (GDP) growth rate for the third quarter of the current fiscal year is projected to reach 8.3%. This increase is attributed to heightened demand following cuts in Goods and Services Tax (GST) rates, although the impact of last year’s high base effect will also play a role.
A report from Union Bank of India indicates that the Gross Value Added (GVA) growth rate could hit 8%, surpassing the 6.5% recorded in the same quarter last year. However, it may be slightly lower than the 8.1% seen in the second quarter.
The report states, “The GDP figures for the third quarter of FY 2026, to be released on February 27, are expected to be 8.3%, significantly higher than the 6.4% recorded in the same period last year.”
According to the report, the nominal GDP growth rate is anticipated to decrease to 8.5%, down from 8.7% in the second quarter and 10.3% in the same period last year. This decline is attributed to a drop in the GDP deflator due to reduced inflation.
The bank noted that its estimates are based on the previous base year, as clarity regarding the impact of changes made by the Ministry of Statistics and Programme Implementation (MoSPI) on GDP figures is still pending.
The report further mentions that the growth forecast for FY 2026 remains robust, with early indicators for FY 2027 also appearing positive. However, a reassessment of annual estimates will be necessary once clarity on the new base year is established.
MoSPI is set to release GDP figures with the revised base year of 2022-23 this Friday. The government previously announced that FY 2022-23 has been selected as the base year for the new series. Efforts have been made to strengthen GDP estimates using new inputs, particularly from institutional sectors, including private companies and MSMEs, where data has been lacking for an extended period.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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