New Delhi: India’s economy is expected to grow at 7.4 per cent in the 2025–26 financial year, accelerating from 6.5 per cent recorded in the previous fiscal, driven largely by improved performance in the manufacturing and services sectors, according to government data released on Wednesday.
The projection is based on the first advance estimates of national income issued by the Ministry of Statistics and Programme Implementation. The data indicates that manufacturing and construction activities are likely to register growth of around 7 per cent during the current fiscal year.
The ministry noted that strong momentum in the services sector remains the key contributor to economic expansion. It said buoyant services activity has emerged as the principal driver of real gross value added growth, which is estimated at 7.3 per cent for the 2025–26 financial year.
In contrast, the agriculture and allied sector, along with electricity, gas, water supply and other utility services, is expected to record relatively moderate growth during the year ending March 31.
The estimates further suggest that nominal gross domestic product, measured at current prices, is projected to grow by about 8 per cent in 2025–26.
The advance estimates play a crucial role in shaping the Union Budget, which is scheduled to be presented on February 1.
