India’s gross domestic product (GDP) is estimated to grow at a rate of 7.7 percent in FY26, according to the second advanced estimates of the Ministry of Statistics and Programme Implementation (Mospi).
The growth rate was 7.1 percent during FY25.
In nominal terms, that is not taking inflation into account, the economy is estimated to have grown by 8.9 percent during 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 growth rate in Real GDP during 2025-26 is estimated at 7.7 percent as compared to 7.1 percent in 2024-25. Nominal GDP or GDP at Current Prices is estimated to attain a level of Rs 346.36 lakh crore in the year 2025-26, against Rs 318.07 lakh crore in 2024-25, showing a growth rate of 8.9 percent,” the ministry said.
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.
In terms of gross value added (GVA), real and nominal growth has come in at 7.9 percent and 9.1 percent, respectively, during the same period.
The ministry said that secondary and tertiary sectors boosted the performance of the economy by registering growths of 8.8 percent and 9.3 percent, respectively, at constant prices.
The primary sector has observed a growth of 3.2 percent, mainly driven by the performance of agricultural and fishery sectors.
Primary sector largely includes the agricultural economy while secondary and tertiary sectors pertain to factory activity and services sector, respectively.
On the expenditure side, both the private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF) have exhibited more than 7.5 percent growth rate in FY26, the ministry said.