FY26 GDP growth pegged at 7.4%

India's Gross Domestic Product (GDP) is expected to grow 7.4 per cent in FY 2025-26, driven by a buoyant services sector.

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GDP growth came in at 6.5% in FY 2024-2025.

As per the First Advance Estimates released by the Union government, nominal GDP is estimated to grow at 8 per cent in FY 2025-26.

Real Gross Value Added (GVA) is estimated at Rs 184.50 lakh crore in the FY 2025-26, up 7.3 per cent from the provisional estimates of Rs 171.87 lakh crore in FY 2024-2025.

Buoyant growth in the services sector has been found to be a major driver in the estimated real GVA growth, the government said.

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 per cent at constant prices in FY 2025-26.

Trade, hotels, transport, communication & services related to broadcasting sector has been estimated to grow by 7.5 per cent at constant prices in FY 2025-26.

Manufacturing and construction in the secondary sector has been estimated to achieve a growth rate of 7.0 per cent at constant prices in FY 2025-26.

Agriculture & allied sector (3.1 per cent) and electricity, gas, water supply & other utility services sector (2.1 per cent) have seen moderate growth rate in GVA at constant prices during FY 2025-26.

Gross Fixed Capital Formation (GFCF) has been estimated to have 7.8 per cent growth rate at constant prices during FY 2025-26, compared to 7.1% growth rate in previous year.

 

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