The Ministry of Statistics and Programme Implementation (MoSPI) has released the Provisional Estimates (PE) of the Annual Gross Domestic Product (GDP) for the Financial Year 2025-26. It has also released the Quarterly Estimates of GDP for the Fourth Quarter (Q4, January-March) of FY 2025-26 along with its Expenditure components both at Constant (2022-23) and Current prices.
The Ministry has released the New Series of Annual and Quarterly GDP estimates with base year 2022-23. On account of information received for the Q4 of FY 2025-26, the Annual Estimates for the FY 2025-26 have been revised. Accordingly, the real GDP is 7.7 per cent and nominal GDP by 8.9 per cent with a strong push from the secondary and teritiary sector that has been acting as engines or drivers of economic growth.
The upwards trajectory of the Indian economy and greater growth rates compared to the previous fiscal year also illustrates the resilience of New Delhi to sustain economic growth momentum despite geopolitical and geo-economic headwinds such as West Asia crisis, energy hiccups, tariff tussle with the US, soaring global inflationary pressure etc.
How did the economic parameters perform in the Financial Year 2025-26
- Real GDP and nominal GDP grew by 7.7 per cent and 8.9 per cent respectively
- The Real and Nominal GVA grew by 7.9 per cent and 9.9 per cent respectively
- Secondary and teritiary sectors are the real engines or drivers of growth at a real and nominal GVA of 7.9 per cent and 9.9 per cent
- Nominal GDP has witnessed a growth of 8.9 per cent
- Secondary and teritiary Sector have boosted the performance of the economy with growth rates of 8.8 per cent and 9.3 per cent respectively at constant prices
- The primary sector has witnessed 3.2 per cent growth rate mainly driven by the performance of the agriculture and fisheries sector
- Manufacturing, trade, repair, hotels, transport, communication and services related to broadcasting & storage and financial, real estate and professional services sector have attained double digit growth at both constant and current prices
- On the expenditure side, both Private Final Consumption Expenditure(PFCE) and Gross Fixed Capital Formation(GFCF) have exhibited more than 7.5 per cent growth rate
Greater growth rates compared to previous financial year; Indicates strong growth momentum
Real GDP or GDP at Constant Prices is estimated to attain a level of ₹323.12 lakh crore in the FY 2025-26, against the First Revised Estimate (FRE) of GDP for the year 2024-25 of ₹299.89 lakh crore. The growth rate in Real GDP during 2025-26 is estimated at 7.7 per cent as compared to 7.1 per cent in 2024-25. Nominal GDP or GDP at Current Prices is estimated to attain a level of ₹346.36 lakh crore in the year 2025-26, against ₹318.07 lakh crore in 2024-25, showing a growth rate of 8.9 per cent.
Real GVA is estimated at ₹294.91 lakh crore in the year 2025-26, against ₹273.36 lakh crore in FY 2024-25, registering a growth rate of 7.9 per cent as compared to 7.3 per cent growth rate in 2024-25. Nominal GVA is estimated to attain a level of ₹314.87 lakh crore during FY 2025-26, against ₹288.54 lakh crore in 2024-25, showing a growth rate of 9.1 per cent.
Sectoral composition of Nominal GVA in FY 2025-26
India’s economic growth is thus on an upward trajectory despite global economic shocks and other geopolitical headwinds such as tariff tussle with the US, energy hiccups due to the US-Iran war & West Asia crisis etc. The latest estimations indicate stable and strong economic growth rate coupled with solid domestic policies. Despite soaring external economic pressure, India has succesfully sustained its position as the world’s fastest growing & emerging economy and has exhibited unparlleeld resilience against geopolitical and geo-economic impediments.
