India’s GDP Expected to Grow at 7.4%

There is good news for the country on the economic front. According to the initial estimates released by the Central Government, India’s Gross Domestic Product (GDP) is expected to grow at a rate of 7.4% in the financial year 2025-26, compared to 6.5% in the previous year.

As per the data released on 7 January, the Indian economy is projected to grow by 7.4% in 2025-26, which is an increase of 0.9 percentage points over the last financial year. This growth is primarily attributed to the strong performance of the manufacturing and services sectors.

According to the first advance estimates of national income released by the Ministry of Statistics and Programme Implementation (MoSPI), the manufacturing and construction sectors are expected to record a growth rate of around 7%.

MoSPI stated that the robust expansion of the services sector has emerged as a major driver of the estimated 7.3% real Gross Value Added (GVA) growth in the financial year 2025-26.

However, moderate growth is expected in agriculture and allied sectors, as well as in electricity, gas, water supply, and other utility services during the current financial year ending on 31 March.

The ministry further said that nominal GDP, or GDP at current prices, is estimated to grow at a rate of 8% during 2025-26.

The advance estimate data is used in the preparation of the Union Budget, which is scheduled to be presented on 1 February.