India's GDP growth projected at 7.4% for FY 2025-26

India's economy is expected to grow by 7.4% in the next financial year, according to the National Statistics Office.

This growth is driven by various sectors, with services leading the way.

Prime Minister Narendra Modi has attributed this growth to the government's investment push and demand-led policies.

While the overall outlook is positive, economists have cautioned about potential slowdowns in the second half of the fiscal year due to global headwinds and other factors.

The growth is supported by steady investment and consumption, with the services sector showing the strongest performance.

However, there are concerns about nominal growth and the impact of global trade risks.

Agriculture is a weak spot, with growth estimated at just 3.1%, which could affect rural incomes and broader consumption demand.

Private consumption is also expected to grow by only about 7%, slower than in the previous year, despite government efforts to revive demand.

Additional challenges include the lingering impact of US tariffs on merchandise exports and a contraction in government capital expenditure.