India’s FY26 GDP Growth The Union government has projected real GDP growth at 7.4% for FY 2025–26, higher than 6.5% in FY25. Nominal GDP growth for FY26 is estimated at 8%, according to the First Advance Estimates (FAE). The FAE for any year is important as it forms the basis for various calculations and ratios used in preparing the Union Budget. While the country's economic growth was 6.5 percent in the 2024–25 financial year, the first national income estimate released by the Ministry of Statistics and Programme Implementation indicates that the growth rate could increase to 7.4 percent in the 2025–26 financial year due to the performance of the manufacturing and services sectors. The real Gross Value Added (GVA) is projected to increase to 7.3 percent in the 2025–26 financial year. The Reserve Bank of India had projected the country's economic growth to be 7.3 percent in the 2025–26 financial year.
