India’s economy is estimated to grow at a robust 7.4% in real terms in FY 2025–26, according to the First Advance Estimates of Gross Domestic Product (GDP) released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
The growth momentum is primarily driven by strong performance in the services sector, which has propelled Real Gross Value Added (GVA) growth to 7.3% during the year.
Key Highlights
Real GDP growth: 7.4% in FY 2025–26 (6.5% in FY 2024–25)
Nominal GDP growth: 8.0%
Real GVA growth: 7.3%
Nominal GVA growth: 7.7%
GDP and GVA Estimates
Real GDP (Constant Prices): ₹201.90 lakh crore
(₹187.97 lakh crore in FY 2024–25)
Nominal GDP (Current Prices): ₹357.14 lakh crore
(₹330.68 lakh crore in FY 2024–25)
Real GVA: ₹184.50 lakh crore
(₹171.87 lakh crore in FY 2024–25)
Nominal GVA: ₹323.48 lakh crore
(₹300.22 lakh crore in FY 2024–25)
Sector-wise Performance (Real GVA Growth)
Tertiary Sector (Services):
Financial, Real Estate & Professional Services and Public Administration, Defence & Other Services: 9.9%
Trade, Hotels, Transport, Communication & Broadcasting-related services: 7.5%
Secondary Sector:
Manufacturing and Construction: 7.0%
Electricity, Gas, Water Supply & Other Utility Services: 2.1%
Primary Sector:
Agriculture & Allied Activities: 3.1%
Expenditure-side Indicators
Private Final Consumption Expenditure (PFCE): 7.0% growth
Gross Fixed Capital Formation (GFCF): 7.8% growth
(7.1% in FY 2024–25)
Methodology Overview
Estimates are compiled using the benchmark-indicator method, extrapolating FY 2024–25 data with sector-specific indicators.
Key data sources include:
Index of Industrial Production (IIP)
Financial results of listed companies (Q1 & Q2 FY 2025–26)
Agricultural and livestock production estimates
Coal, petroleum, cement, and steel data
Transport, aviation, and port traffic
GST collections, bank credit, insurance premiums
Central and State Government accounts
Import–export data from the Ministry of Commerce and RBI
Important Note on Base Year Revision
MoSPI is in the process of revising the base year of National Accounts from FY 2011–12 to FY 2022–23. Consequently, future GDP estimates may undergo revisions due to methodological changes and updated data incorporation.
