India’s gross domestic product is projected to grow at 7.4% in the financial year 2025-’26, from 6.5% in 2024-’25, according to the first advance estimates released by the National Statistics Office on Wednesday.
The projection released by the Ministry of Statists and Programme Implementation is slightly higher than the Reserve Bank of India’s forecast of a growth rate of 7.3%.
The manufacturing output is estimated to grow at 7% in the current fiscal year against the 4.5% rise in the previous year. The construction sector is also expected to record a growth of 7%, but lower than 9.4% last year.
While agriculture and allied sectors will grow at 3.1%, lower than 4.6% in 2024-’25, electricity, gas, water supply and other utility services sector at 2.1%, showing a moderate growth rate in the gross value added.
The advance estimates give a broad picture of how the country’s economy may perform in the upcoming year, and help the finance ministry decide on budgetary allocations.
The Union Budget for 2026-’27 is expected to be announced in the first week of February.
Financial, real estate and professional services, and public administration, defence and other services in the tertiary sector are estimated to grow at 9.9% in the current fiscal year.
Trade, hotels, transport, communication and services related to the broadcasting sector are estimated...
