Indian Economy Projected to Grow at 7.4% in 2025-26
The latest government data indicates that the Indian economy is poised to expand by 7.4% in the fiscal year 2025-26, a significant increase from the previous year’s 6.5%. This growth is primarily driven by the improved performance of the manufacturing and services sectors.
The Ministry of Statistics & Programme Implementation (MoSPI) has released the first advance estimates of national income, projecting a 7% growth rate for the manufacturing and construction sectors.
According to MoSPI, the services sector has emerged as a key driver of the estimated real Gross Value Added (GVA) growth rate of 7.3% in the upcoming fiscal year.
However, sectors such as agriculture and allied activities, as well as electricity, gas, water supply, and other utility services, are expected to experience a more moderate growth rate in the current fiscal year ending on March 31.
MoSPI further reports that the nominal GDP, or GDP at current prices, is forecasted to grow by 8% in 2025-26.
These advance estimates play a crucial role in the preparation of the Union Budget, which is scheduled to be presented on February 1.
