India's GDP Grows by 7.7% in 2025-26: Key Sectors Drive Strong Economic Momentum
India’s economy has maintained strong momentum in 2025-26, with the real Gross Domestic Product (GDP) estimated to grow by 7.7 per cent compared to 7.1 per cent in 2024-25. The Ministry of Statistics and Programme Implementation (MOSPI) released the Provisional Estimates of Annual GDP for the Financial Year 2025-26 and quarterly estimates for January to March 2026.
The real GDP is estimated to reach over 323 lakh crore rupees in 2025-26, against the first revised estimate of GDP for 2024-25, which was over 299 lakh crore rupees. The Primary sector, which includes agriculture and fishery, has observed a 3.2 per cent growth rate. This growth is primarily driven by the performance of the agriculture and fishery sectors.
In the fourth quarter of 2025-26, the real GDP has been estimated to grow by 7.8 per cent. The real GDP in the fourth quarter of the last fiscal year is estimated at 87.77 lakh crore rupees, compared to 81.40 lakh crore rupees in the fourth quarter of 2024-25. The Secondary and Tertiary sectors have been the major drivers of both real and nominal gross value added growth.
Addressing a press conference in New Delhi, Secretary of MOSPI, Saurabh Garg, highlighted that Gross Fixed Capital Formation (GFCF), an indicator of investment activity in the economy, recorded robust growth of 8.2 per cent in 2025-26, compared to 6.4 per cent in the previous financial year. Garg emphasized that the figures reflect strong investment momentum and a continued emphasis on capital expenditure by the government. He also noted that private consumption remained resilient during the year, supported by strong passenger vehicle registrations and sustained consumer confidence. The agriculture sector registered healthy growth, driven by improved performance in crops, oilseeds, and sugarcane production.
Chief Economic Adviser, Dr. V. Anantha Nageswaran, spoke on the occasion and highlighted the government's proactive measures to maintain macroeconomic stability amid global uncertainties. Steps have been taken to ensure adequate availability of fertilizers for the ongoing Kharif season, support MSME exporters, and strengthen supply chains. Dr. Nageswaran added that despite geopolitical challenges and external uncertainties, high-frequency indicators continue to reflect resilience in domestic demand and economic activity.
Overall, the strong GDP growth in 2025-26 underscores the government's commitment to fostering a robust and sustainable economic environment. The focus on investment, capital expenditure, and support for key sectors has played a crucial role in driving this growth.
