Government Projects India’s GDP Growth at 7.4 per cent for FY 2025–26, up from 6.5 per cent in FY 2024–25, according to the advanced estimates released by the Ministry of Statistics and Programme Implementation on Wednesday.
The latest GDP numbers will help India retain the fastest-growing major economy tag. According to official data, Real GDP or GDP at Constant Prices is estimated to attain a level of ₹201.90 lakh
crore in FY 2025-26, against the Provisional Estimates (PE) of GDP for the FY 2024-25 of
₹187.97 lakh crore, registering a growth rate of 7.4%. Nominal GDP or GDP at Current
Prices are estimated to attain a level of ₹357.14 lakh crore in the FY 2025-26, against ₹330.68
lakh crore in FY 2024-25, showing a growth rate of 8.0%
Key Takeaways
- Real GDP is estimated to grow by 7.4% in FY 2025-26, compared to a growth rate of 6.5% during FY 2024-25.
- Nominal GDP is estimated to grow at 8.0% in FY 2025-26.
- Buoyant Growth in Services Sector is a major driver in the estimated Real GVA growth rate of 7.3% in FY 2025-26.
- Financial, real estate, and professional services, as well as public administration, defence, and other services in the tertiary sector, are estimated to attain a substantial growth rate of 9.9% at Constant Prices in FY 2025-26.
- Trade, Hotels, Transport, Communication & Services related Broadcasting Sector has been estimated to grow by 7.5% 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% at Constant Prices in FY 2025-26.
- Agriculture & Allied Sector (3.1%) and Electricity, Gas, Water Supply & Other Utility Services Sector (2.1%) 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% during FY 2025-26.
- Gross Fixed Capital Formation (GFCF) has been estimated to have 7.8% growth rate at Constant Prices during FY 2025-26, compared to 7.1% growth rate in the previous FY.
India’s manufacturing sector is expected to remain robust in FY 2025–26, with expected growth of around 7%, as opposed to 4.5% last fiscal, while construction continued to be healthy at a growth rate of 7%, compared with an increase of 9.4% in 2024-25. Nominal GDP, which accounts for inflation, is estimated to grow by 8% in 2025-26.
Aggregate demand for FY26 is flat, according to the first advance GDP estimates. One of the heads that has made a good contribution is government consumption, which has grown by 5.2% in real terms. With excellent growth of 6.4%, exports have also maintained the lead. Growth in private consumption was slightly slower at 7.0%, maybe as a result of the downturn in the agricultural sector. According to Soumya Kanti Ghosh, group chief economic adviser of State Bank of India, per capita consumption increased by 6.1%.
The Bottom Line
India’s economy in FY26 is expected to stay on a stable growth path, supported by government spending and resilient exports. While private consumption may soften slightly due to slower agricultural growth, steady per-capita consumption suggests that underlying demand remains intact.
