Published: 6 January 2026Business StandardEconomy
NSO First Advance Estimates: India's GDP to Grow 7.4% in FY 2025-26
The National Statistics Office (NSO) released the First Advance Estimates of GDP on January 7, 2026, projecting India's real GDP growth at 7.4% in FY 2025-26, up from 6.5% in FY 2024-25. Real GDP is estimated at ₹201.90 lakh crore compared to ₹187.97 lakh crore in the previous year. Nominal GDP is estimated to grow at 8.0%.
The services sector emerged as the key growth driver with the real GVA growth rate estimated at 7.3%. Financial and public services grew 9.9% each, trade at 7.5%, and manufacturing/construction at 7.0% each. Agriculture growth was estimated at 3.1%. Mining contracted 0.7%. The strong growth was attributed to buoyant domestic demand, government capital expenditure, and a rebound in manufacturing.
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Q: Evaluate the drivers of India's projected 7.4% real GDP growth in FY 2025-26 as per NSO's First Advance Estimates and its implications for macro policy.
Answer (50 words):
NSO's First Advance Estimates (January 7, 2026) project real GDP growth at 7.4% in FY 2025-26 (₹201.90 lakh crore) versus 6.5% in FY 2024-25. Services GVA leads at 7.3%, with financial and public services 9.9% each; manufacturing/construction 7.0%; agriculture 3.1%; mining contracts 0.7%; nominal GDP grows 8.0%.
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Frequently asked questions
What did the NSO First Advance Estimates project for India's GDP growth in FY 2025-26?
The **National Statistics Office (NSO)** released its **First Advance Estimates** on **January 7, 2026**, projecting India's **real GDP growth at 7.4% in FY 2025-26**, up from **6.5% in FY 2024-25**. **Real GDP** is estimated at **₹201.90 lakh crore** (vs ₹187.97 lakh crore in the previous year). **Nominal GDP growth** is estimated at **8.0%**. Strong growth was attributed to domestic demand, government capex, and manufacturing rebound.
Which sector drove India's GDP growth in FY 2025-26 according to the NSO First Advance Estimates?
According to the **NSO First Advance Estimates** (January 7, 2026), the **services sector** was the key growth driver for FY 2025-26 with **real GVA growth at 7.3%**. Within services: **financial and public services grew 9.9% each**, **trade grew 7.5%**. **Manufacturing and construction** each grew **7.0%**. **Agriculture** grew **3.1%** while **mining contracted 0.7%**. Overall real GDP growth is projected at **7.4%**.
What is the estimated real GDP value for India in FY 2025-26 as per the NSO First Advance Estimates?
The **NSO First Advance Estimates** (released January 7, 2026) estimate India's **real GDP at ₹201.90 lakh crore** in FY 2025-26, compared to **₹187.97 lakh crore** in FY 2024-25 — representing **7.4% growth**. **Nominal GDP** is estimated to grow at **8.0%**. The services sector, with **7.3% GVA growth**, is the key driver. Strong **domestic demand**, **government capital expenditure**, and a **manufacturing rebound** explain the acceleration from 6.5% growth in FY 2024-25.
Why did India's GDP growth accelerate to 7.4% in FY 2025-26 according to NSO estimates?
According to the **NSO First Advance Estimates** (January 7, 2026), India's real GDP growth accelerated to **7.4% in FY 2025-26** (from **6.5% in FY 2024-25**) due to **buoyant domestic demand**, **government capital expenditure**, and a **rebound in manufacturing**. The **services sector** (GVA 7.3%), especially **financial and public services (9.9% each)**, led growth. Real GDP reached **₹201.90 lakh crore**.
What were the sector-wise growth rates in the NSO First Advance Estimates for FY 2025-26?
NSO First Advance Estimates (FY 2025-26, released January 7, 2026) sector-wise growth: **Financial services: 9.9%**, **Public services: 9.9%**, **Trade: 7.5%**, **Manufacturing: 7.0%**, **Construction: 7.0%**, **Agriculture: 3.1%**, **Mining: -0.7%** (contraction). Overall **real GVA growth: 7.3%**, **real GDP growth: 7.4%**, **nominal GDP growth: 8.0%**. Real GDP estimated at **₹201.90 lakh crore**.
