New Delhi, Feb 28 (AHN) India’s growth is expected to advance in Q4 FY26 further as has been evident form the high frequency indicators, according to economists, as India’s GDP growth has been revised upwards to 7.6 per cent form the previous estimate of 7.4 per cent for FY26, based on the old series.

Overall, “we foresee the limited impact of the change in the new series, with no durable bearing on fiscal ratio. With this, we continue with our forecast of 7-7.5 per cent growth for FY27,” said Jahnavi Prabhakar, economist, Bank of Baroda.

The real GDP growth for FY26 looks achievable at 7.6 per cent and “is in line with our expectation,” Prabhakar added.

This will be on the back of remarkable double-digit growth expected in the manufacturing sector (11.5 per cent from 9.3 per cent) which has expanded in the last three years.

Additionally, stupendous growth is expected in the trade, hospitality and tourism sector with 10.1 per cent growth in FY26 from 6.6 per cent in the previous year, said the report.

In nominal terms, strong growth in exports (9.6 per cent from 8.3 per cent) along with steady growth in PFCE at 8.9 per cent will hold ground for solid growth in FY26.

There has been reasonable traction in consumption demand amid the recent rationalisation of GST rates. A recovery in urban consumption bodes well for the growth outlook.

“Notably, some uncertainty pertains on the tariff front, especially in the US, given the recent changes. However, the new trade deals with other countries might offset any such negative impact,” said the report.

GVA registered a growth of 7.8 per cent in Q3 FY26, up from Q3 FY25 (7.4 per cent) as per the new series. Among the sectors, major momentum was delivered by both services and manufacturing.

Within services, growth was broad based, with trade, hotels noting a growth of 11 per cent in Q3 FY26 versus 6.7 per cent in Q3 FY25.

“Given the rebasing of the GDP series, we do not expect much bearing on fiscal ratios,” said the report.