Prime Minister Narendra Modi on Wednesday said that India’s “Reform Express” continues to gain momentum, as official estimates projected real GDP growth at 7.4 per cent for FY 2025–26, up from 6.5 per cent in FY 2024–25.
According to the National Statistics Office (NSO), nominal GDP is estimated to grow by 8.0 per cent in FY 2025–26.
Reacting to the figures, the Prime Minister said in a post on X that the growth outlook is being driven by the NDA government’s sustained investment push and demand-led policy measures.
“This is powered by the NDA Government’s comprehensive investment push and demand-led policies,” PM Modi said, adding that efforts across infrastructure development, manufacturing incentives, digital public goods and ease of doing business are aimed at realising the vision of a prosperous India.
Official data showed that strong performance in the services sector remains a key growth driver. Financial services, real estate, professional services and public administration are projected to grow by 9.9 per cent at constant prices in FY 2025–26.
Trade, hotels, transport, communication and broadcasting-related services are estimated to expand by 7.5 per cent. Growth in the secondary sector is expected to remain steady, with manufacturing and construction projected to grow by 7 per cent, while agriculture is estimated to record a growth rate of 3.1 per cent.
Real Private Final Consumption Expenditure (PFCE) is projected to grow by 7 per cent in FY 2025–26, supported by income tax exemptions announced in the Union Budget and subsequent GST rate cuts across goods and services.
Gross Fixed Capital Formation (GFCF), a key indicator of investment activity, is estimated to grow by 7.8 per cent at constant prices during FY 2025–26, compared with 7.1 per cent in the previous financial year.
Meanwhile, India’s GDP growth accelerated to 8.2 per cent in the second quarter (July–September) of the current financial year, significantly higher than the 5.6 per cent growth recorded in the corresponding quarter of FY 2024–25, according to data released in November.
-IANS
