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RAS question

According to the NSO First Advance Estimate released in January 2026, India's GDP is projected to grow at what rate in FY 2025-26?

Correct answer: (A) 7.4%.

According to the NSO First Advance Estimates, India's real GDP is projected to grow by 7.4% in FY 2025-26.

  1. (A)

    7.4%

  2. (B)

    6.8%

  3. (C)

    7.0%

  4. (D)

    7.8%

Explanation

The National Statistics Office, under MoSPI, released the First Advance Estimates of GDP for FY 2025-26 with expenditure components at constant 2011-12 and current prices. In the key highlights, it estimated real GDP growth at 7.4% for FY 2025-26, compared with 6.5% in FY 2024-25. The same press note says real GDP, or GDP at constant prices, is estimated to reach ₹201.90 lakh crore in FY 2025-26. That is why 7.4% is the correct figure: the question asks for the real GDP growth projection in the NSO First Advance Estimate, not nominal GDP, GVA, PFCE, or capital formation growth.

Why the other options are wrong

  • (B) 6.8% is not the figure stated in the NSO First Advance Estimates; the cited press note gives 7.4% for real GDP growth in FY 2025-26.
  • (C) 7.0% matches other estimates in the press note, such as real PFCE growth and secondary-sector growth at constant prices, but not overall real GDP growth.
  • (D) 7.8% refers to Gross Fixed Capital Formation growth at constant prices in the press note, not India's real GDP growth rate.

Concept

This tests national income accounting, especially the distinction between real GDP, nominal GDP, GVA and expenditure components. RAS often asks these figures because advance estimates from NSO/MoSPI are standard current-economy inputs for growth, budget and policy questions.

Source

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