Steady private investment, agricultural output and construction activity powered India’s growth to 7.8 per cent in the January-March quarter, with the overall GDP growth in FY26 touching 7.7 per cent, while the RBI decided to keep the repo rate unchanged at 5.25 per cent on Friday.The Q4 growth, which surpassed expectations and projections by economists, was powered by strong domestic demand and government spending.The National Statistics Office (NSO) estimated GDP growth for the full fiscal year ending March at 7.7 per cent compared to a February forecast of 7.6 per cent.The data show the rural economy recovering and pressing ahead.The NSO’s April 2026 data revealed signs of revival in the village economy, with tractor sales up 23.3 per cent; two-wheeler sales up 13.6 per cent and rural auto sales up 12.9 per cent on a year-on-year basis.Overall, though the RBI has lowered its growth projection for FY27 to 6.6 per cent (from 6.9 per cent) making adjustments amid uncertainties around the West Asia war, Chief Economic Adviser V Anantha Nageswaran exuded hopes of India returning to over 7 per cent growth rate in FY28 if external conditions improved.”Even if the growth slows below 7 per cent in FY27, as projected by the RBI, policy measures aimed at preserving macroeconomic stability and ensuring adequate supplies could help the economy return to a growth trajectory above 7 per cent in FY28, provided external conditions improve,” the CEA said.“India’s growth momentum remains strong! GDP growth rate of 7.7 per cent in FY 2025-26 and 7.8 per cent in Q4 of FY 2025-26 reflect the inherent strength of our economy, the success of reforms and the hard work of 140 crore Indians. We shall leave no stone unturned to further ‘ease of living’, ‘ease of doing business’ and increase opportunities for our youth,” PM Narendra Modi said.Earlier today, the RBI also kept the repo rate unchanged at 5.25 per cent for the fourth straight Monetary Policy Committee review, in a major relief to home buyers. The unchanged rates mean no raise in EMIs.Commenting on GDP data, Finance Minister Nirmala Sitharaman said, “Real GDP has been estimated to grow by 7.7 per cent in FY 2025-26. Real GVA has grown by 7.9 per cent in FY 2025-26. Real GDP and Real GVA have been estimated to grow by 7.8 per cent and 7.9 per cent, respectively, in Q4 of FY 2025-26. Notably, manufacturing, trade, repair, hotels, transport, communication and services related to broadcasting, storage and financial, real estate and professional services sectors have attained double-digit growth at both constant and current prices in FY 2025-26.”Sitharaman said the government was committed to further drive the ‘Reform Express’ with decisive policy measures to ensure positive economic momentum amid the global challenges.