India's GDP to Surge 7.4% in FY26 Despite Global Headwinds: Govt Estimates

• India's real GDP is projected to grow by 7.4% in FY2025-26, up from 6.5% in FY25, according to the government's First Advance Estimates.
• The Ministry of Statistics & Programme Implementation (MoSPI) estimates GDP at constant prices to reach Rs 201.90 lakh crore in FY26.
• Key domestic reforms like income tax cuts, GST rationalisation, and foreign trade agreements with Oman, UK, and New Zealand are expected to boost growth.
• Manufacturing and construction sectors are estimated to achieve a 7% growth rate, with the services sector being a major driver at 7.3% real GVA growth.
• Nominal GDP is projected to grow by 8.0% in FY2025-26, reaching Rs 357.14 lakh crore.

Why It Matters: India's economy shows robust growth potential for FY26, driven by reforms despite global challenges.