Government of India (GoI) Projects 7.4% GDP Growth for FY26

Key facts

• The Government of India (GoI) projects the real GDP growth at 7.4% for fiscal year 2025–26, exceeding the Reserve Bank of India (RBI) expectation of 7.3%.
• Nominal GDP growth is estimated at 8% for the current fiscal year, compared to 9.7% recorded in the previous year.
• India’s GDP growth accelerated to a six-quarter high of 8.2% in the second quarter of FY26, following a 7.8% expansion in the April–June quarter.
• Real Gross Value Added (GVA) is expected to expand by 7.3% in FY26, an increase from 6.4% in FY25.
• Nominal GVA is projected to grow at 7.7% in the current fiscal, down from the 9.3% growth recorded in the previous financial year.
• Government spending is estimated to rise by 5.2% in fiscal 2025-26, compared to a 2.3% increase in the previous year.
• Manufacturing and construction sectors are both estimated to achieve a growth rate of 7.0% at constant prices in FY 2025-26.
• The agriculture and allied sector is estimated to grow by 3.1% during FY26, down from the 4.6% growth witnessed in FY24.