India's GDP Growth Hits 7.4% as PM Modi's 'Reform Express' Gains Steam

According to the National Statistics Office (NSO), nominal GDP is estimated to grow at 8.0 per cent in FY2025-26.

In an X post, PM Modi said: "This is powered by the NDA Government's comprehensive investment push and demand-led policies".

"Be it infrastructure, manufacturing incentives, digital public goods or 'Ease of Doing Business', we are working to realise our dream of a prosperous India", the Prime Minister emphasised.

The buoyant growth in the services sector has been found to be a major driver with a robust growth of 9.9 per cent at constant prices in FY 2025-26 for financial services, real estate, professional services, and public administration.

Trade, hotels, transport, and communication & services related to the broadcasting sector have been estimated to grow by 7.5 per cent, the official statement said. Manufacturing and construction in the secondary sector have been estimated to achieve a growth rate of 7 per cent, while the agriculture sector growth rate is estimated at 3.1 per cent.

Real Private Final Consumption Expenditure (PFCE) has been estimated to attain a growth rate of 7 per cent during FY 2025-26, backed by the income tax exemptions announced in the Budget for 20205-26 and subsequent GST rate cuts across goods and services.

Gross Fixed Capital Formation (GFCF) has been estimated to have a 7.8 per cent growth rate at Constant Prices during FY 2025-26, compared to a 7.1 per cent growth rate in the previous FY.

India's GDP growth had accelerated to a robust 8.2 per cent in the second quarter (July-September) of the current financial year compared to the corresponding figure of 5.6 per cent during the same quarter of FY 2024-25, according to figures released in November.

- IANS