India's GDP Growth Pegged at 7.4% for Financial Year 2025-26

MT Newswires Live01-08

India's economic growth, measured by the real gross domestic product (GDP), is expected to rise to 7.4% in the current fiscal ending March 31, according to the government's first advance estimate of the data released Wednesday by the Ministry of Statistics and Programme Implementation (MoSPI).

The real GDP growth is projected to rise from 6.5% in 2024-25, while the nominal growth, without adjusting for price increases, is estimated to be 8%.

The sharp rise in projected GDP growth is driven by a resurgence in the manufacturing sector growth to 7% in the current fiscal year from 4.5% a year ago.

Buoyant growth in the services sector also contributed to the estimated Real GVA growth rate of 7.3% in the financial year 2025-26, against a 6.4% growth, a year earlier. The services sector growth is estimated at 9.1% in the current financial year from 7.2% in the previous year.

India's economic growth shows positive signs despite the turmoil caused by the 50% tariffs slapped by the US on Indian goods.

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