US EditionIndia Expects Strong Economic Growth Despite US Tariff Hit
India's GDP growth is projected at 7.4% in FY2025-26, led by manufacturing and services, with nominal GDP expected to grow 8%, driven by investment and private consumption.
- Today, the Indian government agencies reported fiscal projections indicating Real GDP of 7.4 in FY2025-26, up from 6.5 in FY2024-25, and Nominal GDP of 8%.
- Manufacturing-Led gains and stronger investment drove 7.80% growth in manufacturing and construction—secondary sector, 9.9% in Financial, Real Estate & Professional Services and Public Administration—tertiary sector, with GFCF rising 7.8% and PFCE at 7.0%.
- Sector-by-Sector GVA data reveal that the first-half fiscal 2026 figures include 7.8% in the June quarter and 8.2% in the three months ending September, with Agriculture & Allied Sector growing 3.1 and Electricity, Gas, Water Supply & Other Utility Services 2.1.
- The projection positions India to become the world's fourth-largest economy as the Reserve Bank of India revised real GDP for fiscal 2026 to 7.3%, citing easing price pressures.
- Trade tensions and tariffs pose risks as Indian exports to the U.S. face 50% tariffs since August last year, while the International Monetary Fund projected 6.6% GDP growth in fiscal 2026, moderating to 6.2% in fiscal 2027 if U.S.-India trade negotiations delay.
23 Articles
23 Articles
India’s GDP growth estimated at 7.4% in FY26: Government data
India's economy is projected to grow by 7.4% in FY26, surpassing earlier expectations and driven by increased investment and a manufacturing surge. This expansion is expected to push the nation's GDP beyond the $4 trillion mark, supported by accommodative policies and favorable domestic conditions despite global uncertainties.
"India's Reform Express": PM Modi On 7.4% GDP Growth Estimate
Prime Minister Narendra Modi on Wednesday referred to estimates of India's Real GDP growing by 7.4% in 2025-26 and said that "India's Reform Express" continues to gain momentum, powered by the NDA Government's comprehensive investment push.
India's Economy to Grow by 7.4% in FY26, Driven Largely by Service Sector: NSO Data
Get latest articles and stories on Business at LatestLY. The Real GDP has been estimated to grow by 7.4% in the Financial year 2025-26 against the growth rate of 6.5% during FY 2024-25, as per the first advance estimates released by the National Statistics Office (NSO) on Wednesday. Business News | India's Economy to Grow by 7.4% in FY26, Driven Largely by Service Sector: NSO Data.
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