NSO Releases First Advance Estimates of GDP 2025-26: 7.4% Real Growth

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:

1. What is real GDP growth for FY26? → 7.4%
2. Which sector grew fastest? → Tertiary (9.1%)
3. Manufacturing growth increased from? → 4.5% to 7.0%
4. Who is Minister of Statistics? → Rao Inderjit Singh