New Delhi: Prime Minister Narendra Modi on Wednesday welcomed the latest economic projections indicating robust growth for the Indian economy, describing the momentum as evidence that “India’s Reform Express” continues to move forward with speed and purpose. His remarks followed the release of advance estimates showing a sharp rise in economic output during the current financial year.
According to the estimates, India’s real gross domestic product is projected to grow by 7.4 percent in FY26, marking a notable improvement over the 6.5 percent growth recorded in the previous year. The Prime Minister said the performance reflects the impact of sustained policy reforms, strong investment activity, and demand focused measures implemented by the NDA government.
Emphasising the broader vision behind the numbers, the Prime Minister said the government remains committed to building a prosperous India through focused efforts across multiple sectors. He highlighted infrastructure expansion, manufacturing incentives, digital public goods, and continuous improvements in ease of doing business as key pillars supporting economic momentum.
The estimates indicate that real GDP is expected to reach Rs 201.90 lakh crore in FY26, compared to Rs 187.97 lakh crore in FY25. Nominal GDP, which reflects current prices including inflation, is projected to grow by 8 percent to Rs 357.14 lakh crore from Rs 330.68 lakh crore a year earlier.
Growth is being led largely by the services sector, with real gross value added projected to rise by 7.3 percent. Financial services, real estate, professional services, public administration, defence, and related segments are expected to record particularly strong expansion, with growth close to double digit levels in real terms.
Manufacturing and construction are also set to contribute meaningfully, as the secondary sector is projected to grow by 7 percent. Trade, hotels, transport, communication, and broadcasting services are estimated to expand by 7.5 percent, while agriculture and allied activities are expected to post a more moderate growth of 3.1 percent.
On the demand side, private consumption expenditure is projected to grow by 7 percent, indicating stable household spending. Investment activity remains firm, with gross fixed capital formation estimated to rise by 7.8 percent, underlining continued confidence in India’s medium term growth outlook.
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