India’s economy witnessed strong growth across key sectors during FY 2025-26, supported by higher agricultural output, rising industrial activity, robust vehicle sales, and healthy tax collections.
Agricultural production remained resilient, with total food grain output growing by 5.3 percent during the year and 9.6 percent in the fourth quarter. Cereal production increased by 5.2 percent annually, while rice and wheat production expanded by 2.6 percent and 2.3 percent, respectively.
Industrial indicators reflected sustained economic momentum. The Cement Production Index registered annual growth of 8.7 percent, while finished steel consumption rose by 8 percent, driven by continued infrastructure development and construction activity.
The transportation and mobility sectors also posted strong performances. Commercial vehicle sales increased by 12.6 percent during the year, while three-wheeler sales grew by 12.8 percent. Household vehicle registrations rose by 17.4 percent, highlighting strong consumer demand. Registrations of goods transport vehicles and passenger transport vehicles expanded by 18.3 percent and 14.7 percent, respectively.
Trade and logistics activity remained robust. Cargo handled at major ports increased by 7 percent, while scheduled international air passenger and cargo traffic recorded growth of 9.7 percent. Railway passenger traffic grew by 5.3 percent during the year.
Government revenue collections showed healthy growth, with Central GST collections rising by 6.4 percent. Customs duty and Union Excise collections increased by 13.5 percent and 13.9 percent, respectively. Fertilizer subsidy expenditure recorded significant growth of 21.7 percent.
India’s external trade also remained strong. Exports of goods and services grew by 9.3 percent, while imports increased by 11.1 percent. Imports of machinery and equipment surged by 19.3 percent, reflecting continued investment and industrial expansion.
On the price front, wholesale prices of food grains declined by 2.5 percent, indicating easing inflationary pressures in the agricultural sector. Wholesale prices of manufactured products increased moderately by 2.3 percent.
However, some sectors experienced slower growth. Natural gas consumption declined by 3 percent during the year, while cargo handled at minor ports grew by a modest 1.4 percent. Imports of transport goods remained relatively weak despite overall import growth.
Overall, the latest economic indicators suggest that India’s economy maintained a strong growth trajectory in FY 2025-26, supported by broad-based expansion across agriculture, manufacturing, transportation, trade, and fiscal revenues.
