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Investment, exports gain share in new GDP series

Financial Express Kochi

|

February 28, 2026

PRIVATE FINAL CONSUMPTION EXPENDITURE REMAINS THE LARGEST COMPONENT IN CONSTANT PRICES

- PRASANTA SAHU

THE REVISED GDP series indicates a shift in India’s demand composition, with investment and exports gaining prominence. In constant prices, private final consumption expenditure remains the largest component but declined gradually as a share of GDP to 55.7% in FY26, from 57.1% in FY23.

Gross fixed capital formation stays strong at roughly 32% of GDP across years, underscoring sustained capital formation. Government consumption moderates slightly to about 10.2% from 11.1% of GDP, suggesting fiscal demand is stable but not expanding disproportionately.

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