The Indian economy is likely to grow at 7.4 per cent in 2025-26, up from 6.5 per cent in the previous fiscal, mainly on account of better performance of manufacturing and services sectors, as per the government data released on Wednesday.
According to the first advance estimates of national income released by the Ministry of Statistics & Programme Implementation (MoSPI), manufacturing and construction are estimated to achieve a growth rate of 7 per cent.
Key Highlights:
- Real GDP has been estimated to grow by 7.4 per cent in FY 2025-26 against the growth rate of 6.5 per cent during FY 2024-25.
- Nominal GDP is estimated to grow at 8.0 per cent in FY 2025-26.
- Buoyant Growth in Services Sector has been found to be a major driver in the estimated Real GVA growth rate of 7.3 per cent in FY 2025-26.
- Financial, Real Estate & Professional Services and Public Administration, Defence & Other Services in the Tertiary Sector have been estimated to attain a substantial growth rate of 9.9 per cent at Constant Prices in FY 2025-26.
- Trade, Hotels, Transport, Communication & Services related to the Broadcasting Sector have been estimated to grow by 7.5 per cent at Constant Prices in FY 2025-26.
- Manufacturing and Construction in the Secondary Sector has been estimated to achieve a growth rate of 7.0 per cent at Constant Prices in FY 2025-26.
- Agriculture & Allied Sector (3.1 per cent) and Electricity, Gas, Water Supply & Other Utility Services Sector (2.1 per cent) have seen a moderate growth rate in GVA at Constant Prices during FY 2025-26.
- Real Private Final Consumption Expenditure (PFCE) has been estimated to attain a growth rate of 7.0 per cent during FY 2025-26.
- Gross Fixed Capital Formation (GFCF) has been estimated to have a 7.8 per cent growth rate at Constant Prices during FY 2025-26, compared to a 7.1 per cent growth rate in the previous FY.
