India’s Reform Express Gains Speed: PM Modi Highlights 7.4% GDP Growth Projection

New Delhi: Prime Minister Narendra Modi on Wednesday said that India’s “Reform Express” is gaining momentum, with the country poised for robust economic growth. Official estimates indicate that India’s real GDP is expected to grow by 7.4% in FY 2025-26, up from 6.5% in FY 2024-25. According to the National Statistical Office (NSO), GDP growth at constant prices for FY 2025-26 is projected at 8.0%.

PM Modi attributed this performance to the NDA government’s broad investment incentives and demand-driven policies, which are driving sustained growth across sectors.

Sectoral Performance Driving Growth

The Prime Minister emphasized, “Whether it is infrastructure, manufacturing incentives, digital public services, or ease of doing business, we are working to realise our vision of a prosperous India.”

The service sector has been a major growth driver, including financial services, real estate, professional services, and public administration, with a projected growth of 9.9% at constant prices in FY 2025-26.

Broadcasting, trade, hotels, transport, and communication services are expected to grow by 7.5%, while manufacturing and construction in the secondary sector are projected to rise by 7%. Growth in the agriculture sector is estimated at 3.1%.

Private Consumption and Investment on the Rise

Real private final consumption expenditure (PFCE) is expected to increase by 7%, reflecting measures such as income tax relief announced in the budget and reduced GST rates on goods and services.

Gross Fixed Capital Formation (GFCF) is projected to grow by 7.8% at constant prices, up from 7.1% in FY 2024-25, underlining strong investment momentum. According to NSO data released in November, India’s GDP growth in the second quarter (July–September) of FY 2025-26 rose to 8.2%, compared to 5.6% in the same quarter of FY 2024-25.