First Advance Estimates of GDP for 2025-26

Why in News?

The government has estimated that real growth in the Gross Domestic Product (GDP) of the country will stand at 7.4% in the current financial year 2025-26.

• Released by - The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation.

Key Economic Indicators

• Real GDP - According to the estimates, real GDP growth is projected at 7.4 % in 2025-26, up from 6.5 % in FY 2024-25.
• Nominal GDP - Nominal GDP (growth not adjusted for inflation) is expected to grow at about 8 % in the same period.
• Gross Value Added (GVA) - The Gross Value Added (GVA) for FY 2025-26 is projected to expand by around 7.3 %.

Sector-Wise Performance (GVA at Constant Prices)

• Services Sector - The primary driver, with Financial, Real Estate, and Professional Services and Public Administration both expected to grow by 9.9%.
• Manufacturing and Construction- Both sectors are projected to grow by 7.0%. This reflects a rebound for manufacturing, which grew at 4.5% the previous year.
• Agriculture & Allied Sectors - Expected to slow to 3.1% from 4.6% in the previous fiscal year.
• Mining & Quarrying - Estimated to contract by 0.7%.

Demand-Side Highlights

• Private Final Consumption Expenditure (PFCE) - Estimated to grow by 7.0%, slightly down from 7.2% in FY 2024-25.
• Gross Fixed Capital Formation (GFCF)- A proxy for investment, projected to rise by 7.8%, up from 7.1% last year.

• These estimates are based on data available up to November 2025, and will be revised as more information becomes available in the Second Advance Estimates (usually released in February).

Reference

The Hindu | First Advance Estimates of GDP for 2025-26