India’s real Gross Domestic Product (GDP) is projected to grow by 7.4% in 2025–26, compared to 6.5% in the previous fiscal year. According to the first advance estimates released on 7 January 2026 by the Ministry of Statistics and Programme Implementation, the real GDP for the current financial year is estimated to exceed ₹201 lakh crore, higher than the provisional estimate of over ₹187 lakh crore in 2024–25.
The Ministry stated that buoyant growth in the services sector is the major driver of this expansion. Sectors such as trade, hotels, transport, communication, and broadcasting-related services are estimated to grow by 7.5% this fiscal. In the secondary sector, manufacturing and construction are expected to register a 7% growth rate.
Reacting to the GDP figures, Prime Minister Narendra Modi noted that India’s “Reform Express” continues to gain momentum, powered by the NDA Government’s investment-led and demand-led policies. He highlighted ongoing efforts to build a prosperous India through infrastructure development, manufacturing incentives, digital public goods, and improved ease of doing business.
