India's real GDP growth pegged at 7.4% in FY 2025-26 -Governance Now

India's real GDP growth pegged at 7.4% in FY 2025-26

First advance estimates: Buoyant growth in services sector led economy registering Real GVA growth of 7.3% in FY 2025-26

GN Bureau | January 7, 2026

#GDP #Economy

India's Real GDP has been estimated to grow by 7.4% in FY 2025-26 against the growth rate of 6.5% during FY 2024-25. The estimates were released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), on Wednesday.

The First Advance Estimates of Gross Domestic Product (GDP) for the Financial Year (FY) 2025-26 along with its Expenditure components both at Constant (2011-12) and Current Prices were announced. Annual Estimates of Gross Value Added (GVA) at Basic Prices for various economic sectors along with Year-on-Year percent changes, Expenditure components of GDP, Annual estimates of Gross/Net National Income and Per Capita Income for the FYs 2023-24, 2024-25 and 2025-26 at Constant and Current Prices were also released.

Highlights:

* Nominal GDP is estimated to grow at 8.0% 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% 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% at Constant Prices in FY 2025-26.

* Trade, Hotels, Transport, Communication & Services related to 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 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 previous FY.

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 is 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%.

Real GVA is estimated at ₹184.50 lakh crore in the FY 2025-26, against the Provisional Estimates (PE) for the FY 2024-25 of ₹171.87 lakh crore, registering a growth rate of 7.3%. Nominal GVA is estimated to attain a level of ₹323.48 lakh crore during FY 2025-26, against ₹300.22 lakh crore in FY 2024-25, showing a growth rate of 7.7%.

Advance Estimates of GDP are indicator based and compiled using the benchmark-indicator method i.e. the estimates available for the previous financial year (2024-25) are extrapolated using the relevant indicators reflecting the performance of the sectors. Data sourced from various Ministries/Departments/Private Agencies serve as valuable inputs in the compilation of these estimates.

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