India`s Growth Pulse April 2026

India’s Growth Pulse: Tracking India’s Economic Momentum

April 2026
11th Issue
15 min read

Contributors

Manasa Sriram

Editor, India Growth Pulse

Khushi Mahajan

Policy Spotlight Author

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Executive Summary

The April 2026 edition of India’s Growth Pulse tracks India’s economic and sectoral performance through March 2026 and presents an economy that remained broadly stable despite external pressure from the US/Israel-Iran conflict. GDP growth for FY2025-26 was estimated at 7.6%, supported by services, manufacturing, construction, private consumption and investment-led expansion. The edition also highlights the Government’s BHAVYA scheme, approved with an outlay of ₹33,660 crore to develop 100 plug-and-play industrial parks and strengthen India’s manufacturing ecosystem. While external shocks affected freight, insurance costs, wholesale inflation and the rupee, strong foreign exchange reserves, a narrower trade deficit and contained retail inflation helped preserve macroeconomic stability.

Key Developments

India’s real GDP growth for FY2025-26 was estimated at 7.6%, with services remaining the primary growth driver at 9.1%.
Manufacturing and construction sustained momentum at around 7.0%, while private consumption and Gross Fixed Capital Formation grew 7.0% and 7.8% respectively.
GST collections for March crossed ₹2 lakh crore, registering 8.8% year-on-year growth.
External pressures from the US/Israel-Iran conflict raised freight costs, insurance premiums and broader trade uncertainty.
Wholesale inflation rose to 3.88%, while retail inflation stayed within the RBI’s tolerance band at 3.40%.
Foreign exchange reserves rose to $688.05 billion and the trade deficit narrowed to $2.44 billion.
The Government established monitoring mechanisms across energy, logistics and financial stability, introduced a tiered natural gas allocation framework and launched the RELIEF scheme for exporters.
The BHAVYA scheme was approved to develop 100 plug-and-play industrial parks, address land and approval bottlenecks and generate an estimated 15 lakh direct jobs.
Renewable energy capacity additions reached 8,000 MW in March 2026, led by 6,656 MW of solar capacity.
Steel production expanded strongly for FY2025-26, while finished steel exports rose and imports declined.

Key Takeaways

March 2026 demonstrated India’s ability to withstand external shocks while maintaining growth and macroeconomic stability.
BHAVYA is positioned as a major manufacturing-readiness intervention aligned with Make in India, PLI schemes and PM Gati Shakti.
Energy diversification continued to progress, with strong renewable capacity additions alongside continued coal dependence.
External risk management, energy security and export-support measures remain critical to sustaining growth momentum.