India’s GDP to grow at 7.4% in FY26, says govt:Economy’s size estimated to expand to ₹357 lakh crore in 2025-26

The government of India has estimated the Gross Domestic Product (GDP) of 7.4% for the financial year 2025-26 (FY26.) The country had clocked GDP growth rate of 6.5% in the FY25. Manufacturing services sectors to drive India’s growth in FY26 The Central Government made this estimation mainly on account of better performance of manufacturing and services sectors. According to the first advance estimates of national income released by Ministry of Statistics Programme Implementation (MoSPI), manufacturing and construction are estimated to achieve a growth rate of 7%.
“Buoyant growth in the services sector has been found to be a major driver in the estimated real GVA (gross value added) growth rate of 7.3 per cent in FY 2025-26,” MoSPI said. Tertiary Sector to grow at 9.9% 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% in the fiscal under consideration. Agriculture allied sectors to disappoint in fiscal year ending March 31, 2026 The government’s press release also states that agriculture and allied sectors, electricity, gas, water supply and other utility services sectors are estimated to witness moderate growth rate in the current fiscal ending March 31, 2026. Economy’s size to expand at 8% in fiscal ending 31, March 2026: According to the press release, the country’s economy’s size is estimated to expand to ₹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%. The ministry further said that nominal GDP or GDP at current prices is estimated to grow at 8% during 2025-26.
The advance estimates data is used in preparation of the Union Budget, likely to be presented on 1 February, 2026.