India’s Growth Rate Expected to Remain Above 7% for the Entire Year
The Chief Economic Adviser has projected that India’s growth rate for FY 2025–26 will remain above 7%. He stated that strong GDP performance, improved supply chains, and rising private consumption will sustain robust growth. The agriculture sector is also expected to perform better due to higher sowing of wheat and pulses. Machinery imports and steel production have also shown significant growth.
Based on the stronger-than-expected GDP results for Q2 (July–September) of FY 2025–26 and economic indicators observed in October, Chief Economic Adviser V. Anantha Nageswaran expressed confidence that the growth rate for the current financial year will exceed 7%.
Global Risks Still Persist
He also noted that the global geopolitical situation and the U.S. decision to impose a 50% tariff on certain goods still pose significant risks. However, he emphasized that the expansion of roads, airports, and logistics infrastructure over recent years has strengthened the supply side of the economy.
Additionally, the rapid spread of digital infrastructure and rising private consumption continue to reinforce the stability of India’s growth rate.
Earlier Estimates & Economic Indicators
Earlier, HDFC had estimated India’s growth rate for the current financial year at 6.8%. Experts noted that GST rate cuts effective from 22 September and robust festive-season demand will positively influence the third quarter.
Sujan Hajra, Chief Economist at Anand Rathi Group, said that both the manufacturing and services sectors are witnessing strong expansion. Private consumption and investment activity are also showing resilience.
According to the Chief Economic Adviser, agriculture is expected to perform even better in the upcoming quarters. Sowing of wheat, pulses, coarse grains, gram, and oilseeds increased by 7% to 14% compared to last year.
Areas Showing Significant Growth
In Q2 of the current financial year, agriculture grew by 3.5% compared to the same period last year. Machinery imports rose by double digits, indicating future expansion in manufacturing, which will also support employment generation.
Production of steel and cement has also increased by double digits, and rural demand is showing strong momentum.