GDP Grew 7.7% in FY 2025-26, but Agricultural Sector Growth Slowed Down

India's Gross Domestic Product (GDP) grew by 7.7% in FY 2025-26, but the growth rate of the agriculture and allied sector, which provides employment to nearly half of the country’s workforce, declined during the year. According to data released by the Ministry of Statistics and Programme Implementation, agricultural growth also slowed in the fourth quarter (January-March 2026) of the previous fiscal year.

The estimates have been released using 2022-23 as the new base year. According to the data, the agriculture and allied sector recorded a growth rate of only 3.0% in FY 2025-26. This compares with 4.2% in FY 2024-25 and 2.6% in FY 2023-24. During the January-March 2026 quarter, the sector grew by 3.6%, lower than the 3.8% growth recorded in the corresponding period a year earlier. In the fourth quarter of FY 2023–24, agricultural growth stood at 2.7%.

Based on the new base year, GDP at constant prices expanded by 7.7% in FY 2025-26, compared with 7.1% in FY 2024-25 and 7.2% in FY 2023-24. The size of the economy at constant prices has been estimated at Rs 323.12 lakh crore. At current prices, GDP reached Rs 346.36 lakh crore, registering an annual growth of 8.9%.

Among various sectors of the economy, mining recorded a significant slowdown alongside agriculture. The sector’s growth rate fell sharply from 11.7% in FY 2024-25 to 5.2% in FY 2025-26. Manufacturing, on the other hand, improved from 9.3% to 10.7%. Growth in electricity, gas, and water supply services declined to 1.7% from 2.9% a year earlier. Construction growth remained largely stable at 7.4%, compared with 7.3% in the previous year.

Services related to trade, hotels, and transport recorded strong growth, rising from 6.6% to 11.0%. Financial services, real estate, and information technology activities also improved slightly, with growth increasing from 10.0% to 10.4%. Growth in public administration and defence remained unchanged at 5.0%.

At constant prices, the Gross Value Added (GVA) of the agriculture sector stood at Rs 52.38 lakh crore, representing a 3.0% increase over the previous year. However, at current prices, agricultural growth was only 1.4%, compared with 9.2% in FY 2024-25 and 7.6% in FY 2023-24, indicating a sharp moderation in nominal growth in the farm sector.

Private consumption expenditure grew by 7.7% during FY 2025-26, compared with 5.8% in each of the previous two years. Government expenditure increased by 5.5%, while capital investment rose by 8.2%, up from 6.4% in the previous fiscal year. Private consumption continued to account for 55.7% of GDP, while government consumption and capital investment accounted for 10.1% and 32.3%, respectively.

Per capita GDP at current prices was estimated at Rs 243,809, which is 7.9% higher than Rs 225,896 recorded in the previous year.