Services-Led Expansion to Drive India’s Real GDP Growth to 7.4% (First advance estimates in FY2025–26): PHDCCI
Real GDP has been estimated (First advance estimates) to grow by 7.4% in FY 2025-26 against the growth rate of 6.5% during FY 2024-25.
City Air News
Jan 7, 2026 11:36
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New Delhi, January 7, 2026: Despite geopolitical uncertainty and turbulent global landscape, India’s growth story shows strong signs of resilience. The real GDP is estimated to increase to 7.4% (Y-o-Y), in FY 2025-26 as compared to the 6.5% (Y-o-Y) (Provisional estimates) in FY 2024-25, said Rajeev Juneja, President of PHDCCI in a press statement issued here today.
The robust growth of more than 7% real GDP is supported by impetus given by government expenditure and industry investment. The Government Final Consumption Expenditure (GFCE) is estimated to increase to 5.2% (Y-o-Y) and Gross Fixed Capital Formation (GFCF) to 7.8% in FY 2025-26, he said.
The Real GVA is estimated to grow at 7.3% (First advance estimates) in FY 2025-26 as compared with 6.4% Provisional Estimates (PE) during FY 2024-25. This is higher GVA growth is led by upswing on year on year basis in tertiary sector (9.1%) and secondary sector (6.6%) in FY 2025-26 as compared with FY 2024-25, he said.
In the secondary sector, the manufacturing sector expanded by 7.5% (Estimates) (Y-o-Y) in FY 2025-26 as compared with 4.5% in FY 2024-25. Within the tertiary sector, the financial, real estate & professional services and public administration, defence & other services, both grew at 9.9% (Y-o-Y) for the same period. This trend points towards India's steady and robust development, boosted by structural policy reforms by the government", said Mr. Juneja.
According to Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI, the Government’s sustained focus on strengthening supply-chain resilience, accelerating structural reforms, and scaling up infrastructure creation is expected to further reinforce India’s growth trajectory. These measures, combined with a strong macroeconomic framework and rising private investment, will accelerate India’s development momentum and position the economy for sustained and resilient growth.
