Indian Economy Poised for Robust Growth in 2025-26

The Indian economy is projected to grow by 7.4% in 2025-26, up from 6.5% previously, driven mainly by robust manufacturing and services sectors. Growth in nominal GDP is estimated at 8%. Agriculture and utility services are expected to see moderate growth, impacting the upcoming Union Budget.

India's economic outlook for fiscal year 2025-26 appears strong, with government projections indicating a growth rate of 7.4%, up from the preceding year's 6.5%. The latest estimates from the Ministry of Statistics & Programme Implementation credit this growth to a thriving performance by the manufacturing and services sectors.

According to the first advance estimates, manufacturing and construction sectors are expected to see an impressive growth rate of 7% each. The Ministry noted that buoyant growth in services is a key factor bolstering the country's gross value added, speculated to increase by 7.3% in real terms.

Despite these positive trends, sectors like agriculture and utility services are forecasted for only moderate growth through March 31. The advance data also estimates India's nominal GDP to have an 8% growth rate for 2025-26, information that will be vital for the drafting of the Union Budget set for presentation on February 1.

(With inputs from agencies.)