Prime Minister Narendra Modi highlighted that India’s “Reform Express” is gaining momentum, with official data projecting a 7.4% real GDP growth in FY 2025-26, up from 6.5% in FY 2024-25. The National Statistics Office reported an estimated 8.0% growth in nominal GDP for the same period. PM Modi credited this growth to the NDA Government’s investment initiatives and demand-driven policies.
The services sector, including financial services, real estate, professional services, and public administration, witnessed a robust 9.9% growth in FY 2025-26. Additionally, sectors like trade, hotels, transport, communication, and broadcasting services are expected to grow by 7.5%. Manufacturing and construction sectors are projected to grow at 7%, while agriculture is estimated to see a growth rate of 3.1%.
Private Final Consumption Expenditure (PFCE) is set to grow by 7% in FY 2025-26, supported by income tax exemptions and GST rate cuts. Gross Fixed Capital Formation (GFCF) is expected to grow by 7.8% at constant prices during the same period, showing an increase from the previous fiscal year. India’s GDP growth surged to 8.2% in the second quarter of the current financial year, a significant rise from the previous year’s figures.
