What is India's projected real GDP growth for FY26?

India's real GDP is projected to grow at 7.4% in FY26.

Which sector is driving India's economic growth in FY26?

The services sector is the primary driver, with an estimated growth of 7.3%.

How is the manufacturing sector expected to perform in FY26?

Manufacturing growth is anticipated to accelerate significantly, reaching 7% in FY26.

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India's FY26 GDP: 7.4% Growth Driven by Services Surge

7 Jan

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Summary

India's FY26 real GDP growth is projected at 7.4%, up from 6.5% in FY25.
Services sector growth is estimated at 7.3%, driving the overall economic expansion.
Manufacturing growth is expected to accelerate to 7% in FY26.

India's FY26 GDP: 7.4% Growth Driven by Services Surge

India's economic forecast for the fiscal year 2026 indicates a significant upturn, with real GDP growth anticipated to reach 7.4%. This projection marks an increase from the 6.5% growth recorded in the previous fiscal year, signaling a strengthening economy.

The primary driver behind this anticipated expansion is the buoyant services sector, which is estimated to achieve a 7.3% growth rate. Complementing this, the manufacturing sector is projected to accelerate its growth to 7%, up from 4.5% in FY25.

While agriculture growth is expected to moderate, and mining faces a slight contraction, the overall economic outlook remains positive. The robust performance in services, financial, and public sectors underpins India's economic resilience and growth trajectory for FY26.