Business EconomyPosted at: Jun 5 2026 5:03PM


India’s economy maintains strong momentum; real GDP expected to grow 7.7per cent in FY 2025-26

New Delhi, June 5 (UNI) India is poised to sustain its position among the world’s fastest-growing major economies, with Real Gross Domestic Product (GDP) projected to expand by 7.7 per cent in FY 2025-26, according to the latest estimates released by the Ministry of Statistics and Programme Implementation (MoSPI).
Nominal GDP is expected to grow by 8.9 per cent during the fiscal year.
The estimates indicate broad-based economic strength, with Real Gross Value Added (GVA) projected to rise by 7.9 per cent, while Nominal GVA is expected to grow by 9.1 per cent in FY 2025-26.
The growth story is being led by the secondary and tertiary sectors, which are estimated to register robust expansions of 8.8 per cent and 9.3 per cent, respectively, at constant prices. These sectors have emerged as key drivers of economic activity, reflecting sustained industrial output and strong performance across services.
The primary sector is also expected to post a healthy growth rate of 3.2 per cent, supported largely by positive contributions from the agriculture and fisheries segments.
Among individual industries, the manufacturing sector, along with trade, repair, hotels, transport, communication and services related to broadcasting, as well as financial, real estate and professional services, is projected to achieve double-digit growth at both constant and current prices during FY 2025-26, underscoring the resilience of India's productive and service-oriented sectors.
On the demand side, economic activity continues to be buoyed by strong domestic consumption and investment. Both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) are estimated to grow by more than 7.5 per cent during the fiscal year, highlighting healthy consumer demand and sustained capital formation.
The fourth quarter of FY 2025-26 is expected to reinforce the economy’s positive trajectory. Real GDP growth is estimated at 7.8 per cent, while Nominal GDP growth is projected at 9.1 per cent during the January–March period.
Similarly, Real and Nominal GVA are estimated to grow by 7.9 per cent and 9.9 per cent, respectively, in the fourth quarter.
The secondary and tertiary sectors are again expected to be the principal growth engines during the quarter, driving both real and nominal GVA expansion.
Investment activity remained particularly strong, with GFCF recording a growth rate of 10.8 per cent, while PFCE is estimated to grow by 7.1 per cent at constant prices in the fourth quarter, indicating continued confidence among businesses and consumers alike.
The latest estimates reflect the Indian economy’s resilience and balanced growth pattern, supported by strong industrial performance, expanding services activity, rising investments and steady consumer spending, positioning the country for another year of robust economic expansion.
UNI SAS SS
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