New Delhi: The National Statistics Office (NSO) estimated India’s real GDP growth at 7.4% for FY 2025-26 in its first advance GDP estimates released on Tuesday. The projection marked an improvement over the 6.5% growth recorded in FY 2024-25.
The NSO, under the Ministry of Statistics and Programme Implementation, said nominal GDP would grow by 8.0% in FY 2025-26. It attributed the overall expansion mainly to strong momentum in the services sector, which lifted real Gross Value Added growth to 7.3% during the year.
According to the GDP estimates, real GDP at constant prices stood at ₹201.90 lakh crore in FY 2025-26. This compared with ₹187.97 lakh crore in FY 2024-25, based on provisional estimates. Meanwhile, nominal GDP reached an estimated ₹357.14 lakh crore, up from ₹330.68 lakh crore a year earlier.
Real GVA rose to ₹184.50 lakh crore in FY 2025-26 from ₹171.87 lakh crore in FY 2024-25. In nominal terms, GVA increased by 7.7% to ₹323.48 lakh crore during the same period.
GDP estimates show services sector driving growth
The GDP estimates highlighted robust expansion across key services segments. Financial, real estate and professional services, along with public administration, defence and other services, grew by 9.9% at constant prices in FY 2025-26. Trade, hotels, transport, communication and broadcasting-related services expanded by 7.5%.
In the secondary sector, manufacturing and construction posted a combined growth rate of 7.0%. However, agriculture and allied activities recorded moderate GVA growth of 3.1%. Electricity, gas, water supply and other utility services grew by 2.1% during the year.
On the demand side, real private final consumption expenditure rose by an estimated 7.0% in FY 2025-26. Gross fixed capital formation grew by 7.8%, improving from 7.1% in the previous financial year.
The NSO said the advance GDP estimates relied on indicator-based methods. These included industrial output data, corporate financial results, agricultural production estimates, transport indicators, GST collections and government accounts available up to November 2025.
Officials noted that the Ministry is revising the national accounts base year from 2011-12 to 2022-23. As a result, future GDP estimates may undergo revisions. The NSO will release the second advance estimates for FY 2025-26, along with revised historical data, on February 27, 2026.
