The Ministry of Statistics and Programme Implementation (MoSPI) has released the first advance estimates of the country’s economic growth for the fiscal year 2025-26. According to government data, India’s real GDP growth is expected to be 7.4% this year, i.e., in fiscal year 2025-26. Earlier government estimates ranged from 6.3% to 6.8%.
This growth rate was 6.5% in the previous fiscal year (2024-25). The surge in the manufacturing, construction, and service sectors is considered the main reason for this increase. The government has projected nominal GDP (including inflation) growth at 8%. In December, the RBI increased its GDP forecast from 6.8% to 7.3%
Global agencies have raised India’s growth forecast
Fitch: Forecasts 7.4% growth for fiscal year 2026.
Asian Development Bank (ADB): Forecasts 7.2% for 2025.
IMF: Claims 6.6% growth for 2025.
Moody’s: Called India the fastest-growing economy among G20 countries.
What is GDP?
GDP is used to track the health of the economy. It represents the value of all goods and services produced within a country during a specific period. This includes production by foreign companies operating within the country’s borders.