India’s economy is projected to expand at 7.4 percent in the financial year 2025‑26, according to the government’s first advance estimates of GDP. This growth rate is higher than the 6.5 percent recorded in the previous fiscal year, reflecting a continued recovery from pandemic-related disruptions and strong domestic economic activity.
The nominal GDP, which includes the effect of price changes, is expected to rise by 8 percent, signaling healthy overall growth. Analysts say the numbers suggest that India is maintaining momentum despite global uncertainties such as geopolitical tensions, fluctuating oil prices, and slowing growth in major economies.
The services sector is leading the growth trajectory, driven by robust performance in finance, real estate, trade, transport, and communication. Manufacturing and construction are also contributing positively, with an expected growth rate of about 7 percent each. Agriculture, while performing steadily, is projected to grow around 3.1 percent, showing moderate expansion.
Policy measures and strong domestic demand are supporting economic resilience. Investments, government spending, and consumption are all playing key roles in sustaining the momentum. Tax reforms, GST adjustments, and targeted incentives for sectors like manufacturing and infrastructure are expected to further strengthen the economic outlook.
These advance GDP estimates provide an early picture of India’s economic trajectory and will serve as an important reference for the upcoming Union Budget, which is scheduled for February 1. Policymakers are expected to use these figures to guide fiscal planning, balancing growth with inflation management and investment in social sectors.
Experts say that the data reflects India’s growing economic resilience and its ability to maintain steady growth despite external challenges. With a strong domestic market and policy support, the country is well-positioned to achieve stable and sustainable economic expansion in FY26.
Also Read: Jaishankar calls Luxembourg key partner
