Particle.news
Download on the App Store

India’s First Estimates Put FY26 Growth at 7.4% as Nominal Pace Slows to 8%

A pending base‑year revision next month could shift the figures used for the Feb. 1 Budget.

Overview

  • NSO pegs nominal GDP at about ₹357.13–357.14 lakh crore, a level that aligns with the Budget’s assumption even though nominal growth trails the 10.1% projection.
  • Services are estimated to grow 9.1% and manufacturing about 7%, with private consumption up 7% and investment (GFCF) rising 7.8%, pointing to a more investment‑led mix.
  • Growth ran near 8% in the first half of FY26 and is implied to ease to roughly 6.9% in the second half as front‑loaded public capex normalizes.
  • SBI sees FY26 growth near 7.5% with an upward bias and Morgan Stanley projects about 7.6%, while the UN pegs calendar‑year 2026 at 6.6% and brokerages see FY27 nearer 6.5–6.8%.
  • A new GDP series with 2022–23 as base is due in February and the Second Advance Estimates arrive on Feb. 27, with analysts warning that US tariff uncertainty remains a key external risk even as export impacts have been milder than feared.