RBI Projects India's Real GDP Growth at 6.5% for FY 2025-26: Key Sectors Drive Economic Momentum
The Reserve Bank of India (RBI) has projected a robust 6.5% real GDP growth for India in the fiscal year 2025-26, with key sectors like construction, financial, real estate, and professional services driving the economic momentum. Finance Minister Nirmala Sitharaman highlights the country's sustained growth, emphasizing its position as the fastest-growing major economy for the past four years.
Real GdpEconomic GrowthRbiConstruction SectorFinancial ServicesReal Estate NewsMay 30, 2025
According to the Ministry of Statistics and Programme Implementation, the nominal GDP growth rate in the financial year 2024-25 was 9.8%. The construction sector emerged as the major driver of the economy during this period, with an estimated growth of 9.4%. The public administration, defense, and other services sector grew by 8.9%, while the financial, real estate, and professional services sector witnessed a growth of 7.2% in the same period. These figures underscore the diversified nature of India's economic growth, with various sectors contributing to the overall momentum.
Real GDP, or GDP at constant prices, is estimated to reach 187.97 lakh crore in the financial year 2024-25, while the nominal GDP, or GDP at current prices, is projected to attain a level of 30.68 lakh crore rupees in the same fiscal year. This growth is attributed to a combination of government policies, private sector investments, and robust consumer demand.
The construction sector's significant growth of 9.4% in the last financial year is a testament to the government's focus on infrastructure development and urbanization. Major projects in highways, railways, and housing have fueled this growth, creating numerous job opportunities and boosting the economy. The financial, real estate, and professional services sector's 7.2% growth reflects the increasing demand for these services, driven by both domestic and international markets.
Public administration, defense, and other services sector's 8.9% growth highlight the government's efforts to modernize and enhance its services. This sector includes a wide range of activities, from public health and education to defense and security, all of which contribute to the overall well-being and stability of the country.
The RBI's projection of 6.5% real GDP growth for FY 2025-26 is based on several factors, including the expected continuation of government initiatives, private sector investments, and global economic conditions. The government's focus on digital transformation, innovation, and sustainability is expected to further drive growth in the coming years. Additionally, the ongoing efforts to improve the business environment and attract foreign direct investment (FDI) are likely to play a crucial role in sustaining this growth trajectory.
In conclusion, the RBI's projection of 6.5% real GDP growth for FY 2025-26 is a positive outlook for India's economy. The robust performance of key sectors, coupled with government policies and private sector investments, positions India as a leading player in the global economic landscape. As the country continues to navigate challenges and capitalize on opportunities, the future looks promising for sustained economic growth and development.
Frequently Asked Questions
What is the projected real GDP growth for India in FY 2025-26 according to the RBI?
The Reserve Bank of India (RBI) has projected a real GDP growth of 6.5% for India in the fiscal year 2025-26.
Which sector was the major driver of India's economy in the financial year 2024-25?
The construction sector was the major driver of India's economy in the financial year 2024-25, with an estimated growth of 9.4%.
What was the real GDP growth rate for India in the fourth quarter of the last financial year?
India witnessed a real GDP growth of 7.4% in the fourth quarter of the last financial year.
How did the financial, real estate, and professional services sector perform in the financial year 2024-25?
The financial, real estate, and professional services sector witnessed a growth of 7.2% in the financial year 2024-25.
What is the estimated level of real GDP for the financial year 2024-25?
The real GDP, or GDP at constant prices, is estimated to attain a level of 187.97 lakh crore in the financial year 2024-25.
Related News Articles
FPCE Challenges MahaRERA's Move to Create Forum for Builder-Buyer Disputes
Homebuyers' association FPCE has questioned Maharashtra real estate regulator MahaRERA's decision to constitute and be part of a conciliation forum to settle disputes between builders and customers.
MHADA Cracks Down on Stalled Projects in Mumbai, Issues 1,200 Notices to Developers
In a bid to take control of stalled projects in Mumbai, the Maharashtra Housing and Area Development Authority (MHADA) has issued 1,200 notices to developers, cautioning the real estate industry against undermining the authority's efforts.
urge for PM to Establish Urban Infrastructure Development Panel in Major Cities
NEW DELHI, Nov 15: Real estate mogul K P Singh has called on Prime Minister Narendra Modi to set up a high-powered cabinet-rank committee to focus on urban infrastructure development in major cities...
Two Real Estate Dealers Arrested for Extortion in Khammam, Firearms Seized
The police in Khammam have arrested two real estate dealers for an extortion plan involving the illegal possession of firearms. The accused, Riyaz, was on the run but was eventually apprehended. The case has been registered under IPC Section 120 (B) read
Rs 9 Crore Can Only Buy 99 Square Meters of Prime Residential Real Estate in Mumbai: Report
Mumbai, known for its astronomical property prices, has once again set a new benchmark. A recent report reveals that a staggering Rs 9 crore can only purchase 99 square meters of prime residential real estate in the city. This highlights the intense deman
I-T Department Delves into Unconventional Sources for Tax Evidence
The Income Tax Department is expanding its data collection efforts by exploring unconventional sources, including real estate, manufacturing, and telecom sectors. The primary goal is to identify and prevent tax evasion and misreporting.