New Delhi [India], January 7: Prime Minister Narendra Modi on Wednesday highlighted India’s strong economic performance, citing estimates of Real GDP growth of 7.4% in 2025-26. He described the progress as evidence that “India’s Reform Express” is gaining momentum, driven by the NDA government’s investment initiatives and demand-led policies.
In a post on X, PM Modi stated, “Be it infrastructure, manufacturing incentives, digital public goods or ‘Ease of Doing Business’, we are working to realise our dream of a prosperous India.” The post linked to the Ministry of Statistics and Programme Implementation’s first advance estimates of GDP for FY 2025-26.
According to the estimates, India’s Real GDP is projected to reach Rs 201.90 lakh crore in FY26, up from Rs 187.97 lakh crore in FY25, while Nominal GDP is expected to grow 8% to Rs 357.14 lakh crore from Rs 330.68 lakh crore. Real Gross Value Added (GVA) is projected at Rs 184.50 lakh crore, reflecting a 7.3% growth, with Nominal GVA at Rs 323.48 lakh crore, up 7.7%.
The growth is largely driven by the services sector, where financial, real estate, professional services, and public administration, defence, and other services are estimated to expand by 9.9% at constant prices. Manufacturing and construction are expected to grow 7%, while trade, hotels, transport, communication, and broadcasting services are projected to expand 7.5%. Agriculture and allied activities are estimated to post moderate growth of 3.1%.
On the demand side, private final consumption expenditure (PFCE) is projected to grow 7%, reflecting steady household spending, while Gross Fixed Capital Formation (GFCF), a key measure of investment activity, is expected to rise 7.8%, up from 7.1% in the previous fiscal year.
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