India's Economic Surge: Real GDP Estimated to Grow by 7.4% in Current Fiscal Year

Prime Minister Narendra Modi has highlighted the continued momentum of India’s ‘Reform Express,’ as the country’s GDP is estimated to grow at 7.4% during the current fiscal year, a significant improvement from the 6.5% growth recorded in the previous financial year. Reacting to the positive figures, Prime Minister Modi emphasized that this growth is driven by the NDA government’s sustained investment push and demand-led policy measures.

In a social media post, Mr. Modi stated that efforts across infrastructure development, manufacturing incentives, digital public goods, and ease of doing business are all aimed at realizing the vision of a prosperous India. The National Statistics Office (NSO) data reveals that the strong performance in the services sector continues to be a key growth driver. Specifically, financial services, real estate, professional services, and public administration are projected to grow by 9.9% at constant prices in the current fiscal year.

Trade, hotels, transport, communication, and broadcasting-related services are also estimated to expand by 7.5%. The secondary sector, which includes manufacturing and construction, is expected to maintain steady growth, with both sectors projected to grow by 7%. Agriculture, a crucial sector for the country, is estimated to record a growth rate of 3.1%.

Real Private Final Consumption Expenditure (PFCE) is projected to grow by 7% in Financial Year 2025-26, supported by income tax exemptions announced in the Union Budget and subsequent GST rate cuts across goods and services. These measures are expected to boost consumer spending and further drive economic growth.

The government’s focus on infrastructure development, including major projects in roads, railways, and digital connectivity, is playing a crucial role in attracting investments and enhancing productivity. Additionally, the introduction of manufacturing incentives and the simplification of business regulations are making it easier for both domestic and international companies to operate in India.

The robust growth in key sectors, coupled with government initiatives, is setting a strong foundation for India to achieve its vision of becoming a $5 trillion economy. As the country continues to implement reforms and attract investments, the outlook for the Indian economy remains optimistic, with the potential for sustained growth in the coming years.