India's GDP Surges to 7.7% in FY25: Strong Growth in Secondary and Tertiary Sectors

The Ministry of Statistics and Programme Implementation (MoSPI) recently released the Provisional Estimates (PE) of Annual Gross Domestic Product (GDP) for the financial year 2025-26 and Quarterly Estimates of GDP for the Fourth Quarter (January-March) of FY 2025-26. This release marks the second set of GDP data in the new series, with 2022-23 as the base year.

India’s economy grew at a higher pace of 7.7 per cent during 2025-26, compared to 7.1 per cent in 2024-25. In the January-March period of the 2025-26 financial year, the GDP has been estimated to grow by 7.8 per cent.

Real GDP, or GDP at constant prices, is estimated to reach a level of Rs 323.12 lakh crore in the 2025-26 fiscal year, against the First Revised Estimate (FRE) of GDP for 2024-25, which was Rs 299.89 lakh crore. Nominal GDP, or GDP at current prices, has been estimated to attain a level of Rs 346.36 lakh crore in 2025-26, up from Rs 318.07 lakh crore in 2024-25, reflecting a growth rate of 8.9 per cent.

Real Gross Value Added (GVA) is estimated at Rs 294.91 lakh crore in the year 2025-26, compared to Rs 273.36 lakh crore in FY 2024-25, registering a growth rate of 7.9 per cent, up from 7.3 per cent in 2024-25. Nominal GVA is estimated to reach Rs 314.87 lakh crore during FY 2025-26, up from Rs 288.54 lakh crore in 2024-25, showing a growth rate of 9.1 per cent.

The secondary and tertiary sectors have significantly boosted the performance of the economy by registering growths of 8.8 per cent and 9.3 per cent, respectively, during FY26. These sectors encompass a wide range of activities, including construction, manufacturing, trade, hotels, transport, communication, and services related to broadcasting, storage, and financial, real estate, IT, professional services, and ownership of dwelling.

The primary sector, which includes agriculture and fishery, registered a growth rate of 3.2 per cent, primarily driven by the performance of these sectors.

Gross Domestic Product (GDP) is the most common measure for the size of an economy. It measures the total value of goods and services produced by that economy during a specific time period, typically a year or a quarter. This metric helps to understand changes in the size of an economy across different time periods and serves as a broad indicator for the standard of living of its population. GDP can be calculated for a country, a region, or for groups of countries, such as the European Union. Policymakers, businesses, and institutions use GDP to make key economic decisions.