India's GDP Expected To Grow At 7.4% In 2025-26: Centre's Advance Estimates

India's GDP is expected to grow at a rate of 7.4% in the current financial year, up from 6.5% in 2024-25, the Centre has said in advance estimates released on Wednesday.

The numbers are especially significant because they reflect increased growth in a fiscal year in which the US slapped 50% tariffs on India, including a 25% penalty for purchasing Russian oil. The two countries have been discussing a trade deal, which is yet to materialise. 

The estimates were released by the Ministry of Statistics and Programme Implementation, which said the services sector played a big role in the increase this year. 

"Buoyant growth in the services sector has been found to be a major driver in the estimated real GVA (Gross Value Added) growth rate of 7.3 per cent in FY 2025-26," the ministry said. 

While manufacturing and construction are estimated to grow at seven per cent, the figures are expected to be moderate for agriculture and utility services like electricity and water supply. 

The ministry also said nominal GDP, which is GDP at current prices, is estimated to grow at 8% during the fiscal.

"Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 201.9 lakh crore in FY 2025-26, against the Provisional Estimates (PE) of GDP for the FY 2024-25 of Rs 187.97 lakh crore, registering a growth rate of 7.4%. Nominal GDP or GDP at Current Prices is estimated to attain a level of Rs 357.14 lakh crore in the FY 2025-26, against Rs 330.68 lakh crore in FY 2024-25, showing a growth rate of 8%," it said.

"The numbers show India remains the fastest-growing major economy in the world. These will give important inputs to the finance minister as she finalises the 2026 Budget," economist Ved Jain told NDTV.

(With PTI inputs)