The Indian economy is projected to grow at 7.4 per cent in 2025-26, accelerating from 6.5 per cent in the previous fiscal, largely supported by stronger performance in the manufacturing and services sectors, according to government data released on Wednesday.

As per the first advance estimates of national income issued by the Ministry of Statistics & Programme Implementation (MoSPI), manufacturing and construction sectors are expected to post a growth rate of 7 per cent in the coming fiscal year.

“Buoyant growth in the services sector has been found to be a major driver in the estimated real GVA (gross value added) growth rate of 7.3 per cent in FY 2025-26,” the ministry said.

MoSPI, however, noted that the agriculture and allied sector, along with ‘electricity, gas, water supply and other utility services’, is likely to record moderate growth in the current fiscal ending March 31.

The ministry also said nominal GDP, or GDP at current prices, is estimated to expand by 8 per cent in 2025-26.

The advance estimates form the basis for preparing the Union Budget, which is scheduled to be presented on February 1.