India’s real GDP growth has been projected at 7.4 per cent for FY 2025-26, rising from 6.5 per cent in FY 2024-25, according to advance estimates released by the Ministry of Statistics on Wednesday. Officials said the outlook reflects strong domestic demand and stable macroeconomic conditions.
Services emerged as the main growth driver, expanding by 9.9 per cent at constant prices. Financial services, real estate, professional services, and public administration led the surge. Trade, hotels, transport, communication, and broadcasting services recorded an estimated growth of 7.5 per cent during the year.
Manufacturing and construction posted a combined growth of 7 per cent, while agriculture grew by 3.1 per cent. Real private consumption expenditure rose by 7 per cent, supported by income tax exemptions and GST rate reductions announced in the Union Budget. Gross fixed capital formation increased by 7.8 per cent, reflecting stronger investment activity.
Economic momentum strengthened in FY26, with GDP growth reaching 8.2 per cent in the second quarter. The economy grew at 8 per cent during the first half of the year. Despite global headwinds and US tariff hikes, India remains the world’s fastest-growing major economy, with the IMF projecting growth above 6 per cent in FY26.
