India's economy zooms ahead: GDP growth expected to remain strong despite global headwinds

New Delhi (The Uttam Hindu) : The first advance estimate released by the Central Government on Wednesday for the financial year 2025-26 said that the GDP growth rate could be 7.4 percent, which was 6.5 percent in the financial year 2024-25.

Data released by the National Statistical Office (SSO), under the Ministry of Statistics and Program Implementation, showed that India's nominal GDP growth rate is projected to be 8 percent in fiscal year 2025-26. According to the data, the tertiary sector, which includes financial, real estate and professional services, public administration, defense, and other services, is expected to grow at 9.9 percent in constant prices in fiscal year 2025-26.

At the same time, the growth rate of services related to trade, hotels, transport, communication and broadcasting can be 7.5 percent in constant prices. The growth rate of manufacturing and construction, which comes under the secondary sector, can be 7 percent in constant prices. Furthermore, data released by the NSO said that the growth rate of agriculture and related sectors can be 3.1 percent, and the growth rate of electricity, gas, water supply and other utility services sector can be 2.1 percent.

The growth rate of Private Final Consumption Expenditure (PFCE) is estimated to be 7 percent in the financial year 2025-26. The growth rate of Government Final Consumption Expenditure (GFCE) is estimated to be 5.2 percent in the financial year 2025-26. Government data showed that India's exports are expected to grow at a rate of 6.4 percent in the financial year 2025-26. Imports may grow at a rate of 14.4 percent during this period. The country's Net National Income is expected to grow at a rate of 7.3 percent in the financial year 2025-26, as compared to 6.4 percent in the previous financial year. The country's per capita GDP is expected to grow at a rate of 6.5 percent during this period, as compared to 5.5 percent last year.