What’s in the News?
National Statistics Office (NSO) released the First Advance Estimates (FAE) of India’s GDP for Financial Year 2025-26. These estimates show India’s economic performance and provide early indicators of growth before final figures are released.
Why This Matters?
The FAE is crucial because:
- It influences RBI’s monetary policy (interest rates)
- Guides government spending decisions
- Affects investor confidence in India
- Validates India’s status as fastest-growing major economy
Released early (January), it gives 9 months for policy adjustments.
Key Figures (Exam Important)
Growth Rates:
| Indicator | FY26 | FY25 | Change |
|---|---|---|---|
| Real GDP | 7.4% | 6.5% | ↑ 0.9% |
| Nominal GDP | 8% | 10.4% | ↓ 2.4% |
| Real GVA | 7.3% | – | – |
Absolute Values (Rs Lakh Crore):
- Real GDP: 201.90 (vs 187.97 in FY25)
- Nominal GDP: 357.14 (vs 330.68 in FY25)
Expenditure Components:
- GFCF (Investment): 7.8% HIGHEST
- PFCE (Consumer spending): 7.0%
- GFCE (Government spending): 5.2%
Sector-Wise Growth (FY26)
| Sector | Growth | Status |
|---|---|---|
| Tertiary (Services) | 9.1% | FASTEST |
| Secondary (Manufacturing) | 6.6% | Manufacturing +2.5% |
| Primary (Agriculture) | 2.7% | SLOWEST |
Key Point: Manufacturing jumped from 4.5% to 7.0% due to PLI schemes and improved capacity utilization.
Important Details
Real vs Nominal:
- Real (7.4%): Actual growth excluding inflation
- Nominal (8%): Includes inflation (~0.6%)
Minister: Rao Inderjit Singh (MoS, Gurugram)
Organization: National Statistics Office (NSO)/MoSPI
For Your Exam
Must Remember:
- Real GDP: 7.4%
- Tertiary sector: 9.1% (fastest)
- Manufacturing: 7.0% (accelerated)
- Minister: Rao Inderjit Singh
Likely Questions:
- What is real GDP growth for FY26? → 7.4%
- Which sector grew fastest? → Tertiary (9.1%)
- Manufacturing growth increased from? → 4.5% to 7.0%
- Who is Minister of Statistics? → Rao Inderjit Singh
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