NSO releases FAE of GDP 2025-26; Real GDP witnesses 7.4% growth in FY26

Current Context: The National Statistics Office (NSO) released the First Advance Estimates (FAE) of GDP for FY2025-26 on 7 January 2026.

• India’s real GDP is projected to grow by 7.4% at constant 2011-12 prices, up from 6.5% in FY2024-25.
• The real GDP value is estimated at ₹201.9 trillion.
• The nominal GDP at current prices is expected to expand by 8% to about ₹296 trillion.
• Industry and services are driving growth, while agriculture shows moderate expansion.
• Growth is supported by domestic demand, government capital expenditure, and policy reforms.
• India remains one of the fastest-growing major economies globally, with fiscal deficit targeted below 4.5%.

Question:

Q.1 According to the First Advance Estimates (FAE) released by the NSO on 7 January 2026, what is the projected growth rate of India's real GDP for FY 2025-26?
a) 6.5%
b) 7.4%
c) 8.0%
d) 4.5%

Answer: b) India’s real GDP is projected to grow by 7.4% at constant 2011-12 prices, up from 6.5% in FY2024-25.