According to the second advance estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s gross domestic product (GDP) is projected to expand by 7.7 percent in FY26.The growth rate was 7.1 percent during FY25.
In nominal terms, meaning without adjusting for inflation, the economy is estimated to have expanded by 8.9 percent in the last financial year.In absolute terms, real GDP or GDP at constant prices is estimated to attain a level of Rs 323.12 lakh crore in the FY26, Mospi said in a press release issued by the Press Information Bureau.
The ministry stated that the real GDP growth rate for 2025-26 is projected at 7.7 percent, up from 7.1 percent in 2024-25. It added that nominal GDP, or GDP at current prices, is expected to reach Rs 346.36 lakh crore in 2025-26, compared with Rs 318.07 lakh crore in 2024-25, reflecting an 8.9 percent increase. For the fourth quarter of FY26, the GDP growth rate is estimated to be 7.8 percent in real terms and 9.1 percent in nominal terms.
This is the second advanced estimates of the government based on the new GDP series after the recent revision of the inflation basket and new base year of 2022-23.
Regarding gross value added (GVA), real growth stood at 7.9 percent and nominal growth at 9.1 percent over the same period.
The ministry reported that the secondary and tertiary sectors strengthened economic performance, recording growth rates of 8.8 percent and 9.3 percent, respectively, at constant prices.The primary sector has recorded a 3.2 percent increase, largely supported by the strong performance of agriculture and fisheries.
The primary sector mainly encompasses agricultural activities, while the secondary and tertiary sectors relate to manufacturing and the services industry, respectively.On the spending front, the ministry stated that both private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF) recorded growth rates exceeding 7.5 percent in FY26.