Blitz Bureau
NEW DELHI: The Ministry of Statistics and Programme Implementation announced on January 7 that India’s real gross domestic product (GDP) is estimated to grow by 7.4 per cent in the current financial year 2025-26, up from 6.5 per cent in the previous fiscal. The nominal GDP is projected to grow by 8.0 per cent.
The data in “First Advance Estimates of Gross Domestic Product, 2025-26,” highlights robust growth driven primarily by the services sector.
From an overall perspective, real gross value added (GVA) growth is estimated at 7.3 per cent for FY 2025-26.
The tertiary sector has been the major driver of growth, with the financial, real estate, and professional services segment expected to achieve a substantial growth rate of 9.9 per cent at constant prices. Trade, hotels, transport, and communication sector is estimated to grow by 7.5 per cent.
The manufacturing and construction sectors are expected to grow by 7.0 per cent.
Agriculture and allied sectors are estimated to see moderate growth of 3.1 per cent.
Among demand indicators, real private final consumption expenditure is estimated to grow by 7.0 per cent. Gross fixed capital formation is projected to have a 7.8 per cent growth rate, indicating strong investment momentum.
India maintains its position as the world’s fastest-growing major economy. International agencies like the IMF, World Bank, and Fitch have also upgraded their projections for India’s growth, citing strong domestic demand and resilient economic fundamentals. India has become the fourth-largest economy in the world in nominal GDP terms as of 2026.