India’s Reform Express Continues To Gain Momentum, Says PM Modi

Prime Minister Narendra Modi said India’s growth momentum reflects sustained reforms and investment push as official estimates peg FY26 GDP growth at 7.4 per cent.

India’s economy is likely to accelerate in the current financial year, with Prime Minister Narendra Modi on Wednesday asserting that the country’s ‘Reform Express’ continues to gain momentum, following the release of official growth estimates.

The National Statistics Office (NSO) estimates real GDP growth at 7.4 per cent in FY 2025–26, compared with 6.5 per cent in FY 2024–25.

Nominal GDP, meanwhile, is to expand by 8.0 per cent during FY 2025-26.

Taking to X, PM Modi posted, “India’s Reform Express continues to gain momentum. 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.”

Services Sector Remains Key Growth Driver

The NSO data indicate that the services sector remains the primary engine of growth.

The data estimates financial services, real estate, professional services and public administration will grow by a robust 9.9 per cent at constant prices in FY 2025–26.

The official statement projects trade, hotels, transport, communication and broadcasting-related services to grow by 7.5 per cent.

The data show manufacturing and construction growing at 7 per cent, while agriculture records a growth rate of 3.1 per cent.

On the demand side, Real Private Final Consumption Expenditure (PFCE) is to grow by 7 per cent during FY 2025-26, supported by income tax exemptions announced in the Budget for 20205-26 and subsequent GST rate cuts across goods and services.

Gross Fixed Capital Formation (GFCF) is likely to rise by 7.8 per cent at constant prices in FY 2025-26, compared with a growth rate of 7.1 per cent in the previous financial year, reflecting continued investment activity.

The growth outlook follows a strong performance in the current year, with India’s GDP expanding by 8.2 per cent in the second quarter (July–September), significantly higher than the 5.6 per cent growth recorded in the corresponding quarter of FY 2024-25, as per figures released in November.