India’s GDP growth projected at 7.4 per cent in FY 2025-26

Indiarsquos real Gross Domestic Product GDP growth is projected at 74 per cent in the financial year 202526 up from 65 per cent in FY 202425 according to the advanced estimates released by the Ministry of Statistics on Wednesday reported the IANSThe data points to a broadbased recovery led mainly by strong performance in the services sectorServices sector leads growthThe services sector remains the biggest driver of economic expansion Growth in financial services real estate professional services and public administration is estimated at a robust 99 per cent at constant prices in FY 202526 according to the IANSMeanwhile trade hotels transport communication and broadcastingrelated services are expected to grow by 75 per cent the official statement saidManufacturing construction and agriculture performanceThe secondary sector which includes manufacturing and construction is projected to grow by 7 per cent during FY 202526The agriculture and allied sector is estimated to grow at 31 per cent reflecting stable rural activity despite challenges such as weather variabilityConsumption and investment show strong growthPrivate Final Consumption Expenditure PFCE a key indicator of household spending is estimated to grow by 7 per cent in FY 202526 This growth is supported by income tax exemptions announced in the Union Budget 202526 and subsequent GST rate cuts across various goods and servicesGross Fixed Capital Formation GFCF which reflects investment activity is expected to grow by 78 per cent compared to 71 per cent in the previous financial year the news agency reportedStrong Momentum in Second QuarterIndiarsquos GDP growth surged to 82 per cent in the second quarter JulySeptember of FY 202526 up sharply from 56 per cent in the same period last yearGrowth in the secondary sector stood at 81 per cent while the tertiary sector expanded by 92 per cent pushing overall GDP growth above the 8 per cent mark for the quarterSectorwise Q2 PerformanceDuring the second quarter Manufacturing grew by 91 per cent Construction expanded by 72 per cent Financial real estate and professional services recorded a strong 102 per cent growth Agriculture and allied activities grew by 35 per cent Electricity gas water supply and utilities posted a growth of 44 per centConsumption boost reflects rising incomesReal PFCE increased by 79 per cent in Q2 of FY 202526 compared to 64 per cent in the corresponding quarter last year Officials said this reflects higher incomes and improved employment conditions across sectorsFirsthalf growth remains robustFollowing a 78 per cent growth in the first quarter Indiarsquos GDP growth for the first half AprilSeptember of FY 202526 stands at an impressive 8 per cent compared to 61 per cent in the same period of the previous yearFastestgrowing major economyDespite global challenges including US tariff hikes and trade disruptions India continues to remain the worldrsquos fastestgrowing major economyThe International Monetary Fund IMF has projected India to be the only major economy expected to grow above 6 per cent in FY 202526 even as global growth slowswith IANS inputs