Just three weeks before the presentation of the general budget, the Government of India has announced the budget for the current financial year 2025-26. economy (India GDP 2025-26) has been presented. According to advance estimates by the National Statistical Office (NSO), India’s economy will grow by 7.4 percent in fiscal year 2025-26. Earlier, the Reserve Bank of India (RBI) had projected the GDP growth rate for the current financial year to be 7.3 percent.
If we look at the government figures and the performance of the first-second quarter, this estimate (India GDP 2025-26) is not surprising. Further increase in the estimate of economic growth rate is possible in the future, because soon the base year for GDP will be 2022-23 instead of 2011-12.
Due to which the growth rate figures are likely to increase. Several private agencies, including the IMF, World Bank and RBI, have already revised India’s potential growth rate for the current financial year.
Excellent performance of manufacturing and service sector
It is clear from the data that despite global uncertainties, India’s manufacturing and service sectors have performed strongly. Financial, real estate and professional services: 9.9% growth in FY 2025-26, trade, hotels, transport, communication and broadcasting services: 7.5% growth, construction and manufacturing sector (secondary sector): 7.0% growth and manufacturing sector had grown by 4.2% last year. This shows that manufacturing and construction have strengthened the economy. Besides, it is also increasing employment opportunities along with production.
Situation in agriculture and other sectors
Agriculture and allied sectors: 3.1% growth
Utility services like electricity, gas, water supply: 2.1% growth
The slow rate of growth in the agriculture sector is a cause for concern for the government, especially given the prospects of a weak monsoon in 2026.
Nominal GDP, i.e. after inflation adjustment, may grow by 8.0 percent to reach Rs 357.14 lakh crore in the financial year 2025-26.
Private Final Consumption Expenditure (PFCE): 7.0%
Gross fixed capital formation (GFCF): 7.8%
These figures show positive signs in both investment and consumption.
Growth despite global challenges
Global uncertainties remain during the current financial year (India GDP 2025-26), such as geopolitical tensions and US tariff policies, but despite this, India’s economy is growing rapidly. According to government data, per capita income may reach Rs 1,42,119 in the current financial year with a growth of 6.5%, while it was Rs 1,33,501 in the last financial year. Last year a growth of 5.4% was recorded.
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