Even Trump's tariffs failed to halt India's growth, with GDP growth rising from 6.5% to 7.4%.

News Topical, Digital Desk : The government has given a major update regarding the country's economic growth (India GDP growth 2025-26) for the current financial year 2025-26. According to the government, the GDP growth estimate has been increased to 7.4 percent (real GDP 7.4 percent), which is more than the 6.5 percent (fiscal year 2025-26 projections) of the previous financial year 2024-25. This information has been given by the National Statistical Office (NSO) in its first advance estimate report.

The government says strong growth in the services sector is the biggest driver of this rapid pace. According to the report, real GDP could reach ₹201.90 lakh crore in 2025-26, while nominal GDP is projected to reach ₹357.14 lakh crore. Nominal GDP growth is projected at 8 percent.

GVA growth is estimated to be 7.3%

According to the government, real growth in gross value added (GVA) is projected at 7.3 percent. Financial, real estate, and professional services, as well as public administration, defense, and other services, are expected to contribute the most to this growth, with strong growth of around 9.9 percent. Trade, hotels, transport, and communications are projected to grow by 7.5 percent.

Manufacturing and construction sectors grew at 7%.

The government also stated that the manufacturing and construction sectors are expected to grow at a rate of 7 percent, while agriculture and allied sectors are projected to see moderate growth of 3.1 percent. Growth in the electricity, gas, and water supply sector is expected to be 2.1 percent.

The picture on the consumption and investment fronts also appears positive. According to the government, private final consumption expenditure (PFCE) is projected to grow by 7 percent and gross fixed capital formation (GFCF), or investment, by 7.8 percent. This indicates that both domestic demand and capital investment remain strong.

Indian economy may perform better in 2025-26

The government has clarified that these figures are advance estimates and are subject to revision. The second advance estimates will be released on February 27, 2026, and will update the figures based on new information. Overall, the government says that the Indian economy could perform better in 2025-26, driven by a strong services sector, a pick-up in investment, and stable consumption.

Read More: Silver Price Crash: Silver prices fell by ₹11,000, breaking ₹19,000 in two days, these two reasons led to a major slowdown.