Moody’s India FY26 GDP growth projection: Moody’s Ratings has a projection for India’s growth in the current fiscal. The rating agency expects that the country
will clock a 7.3 per cent growth in FY26, according to the Press Trust of India. Moody's further projects that the strong economic expansion would aid average household incomes and stimulate demand for insurance protection. The PTI report further said that Moody's said the industry looks set to benefit from sustained premium growth on the back of robust economic expansion, increased digitisation, tax changes and a planned reform of the dominant state owned insurance sector. The increase should improve the industry's currently weak profitability. “We expect India's economy to grow by 7.3 per cent in FY 2025 (year to March 2026), up from 6.5 per cent the previous year. This will increase average incomes and support demand for insurance," it said. Meanwhile, the Ministry of Statistics & Programme Implementation (MoSPI), in advanced estimates, said that the Indian economy is expected to witness a growth rate of 7.4 per cent in the financial year 2025-26, significantly higher than the growth rate of 6.5 per cent in the previous fiscal 2024-25, mainly on account of better performance of manufacturing and services sectors. According to the first advance estimates of the national income released by the MoSPI, manufacturing and construction are estimated to achieve a growth rate of 7 per cent. "Real GDP (Gross Domestic Product) has witnessed a 7.4 per cent growth rate in FY 2025-26, compared to a growth rate of 6.5% in FY 2024-25. Buoyant growth in the Services Sector has led the Indian economy to register Real GVA growth of 7.3% in FY 2025-26," the MoSPI said in a statement. India GDP FY 2025-26: Key Highlights Real GDP has been estimated to grow by 7.4% in FY 2025-26 against the growth rate of 6.5% during FY 2024-25. Nominal GDP is estimated to grow at 8.0% in FY 2025-26. Buoyant Growth in the Services Sector has been found to be a major driver in the estimated Real GVA growth rate of 7.3% in FY 2025-26. Financial, Real Estate & Professional Services and Public Administration, Defence & Other Services in the Tertiary Sector have been estimated to attain a substantial growth rate of 9.9% at Constant Prices in FY 2025-26. Trade, Hotels, Transport, Communication & Services related to the Broadcasting Sector have been estimated to grow by 7.5% at Constant Prices in FY 2025-26. Manufacturing and Construction in the Secondary Sector has been estimated to achieve a growth rate of 7.0% at Constant Prices in FY 2025-26. The Agriculture & Allied Sector (3.1%) and the Electricity, Gas, Water Supply & Other Utility Services Sector (2.1%) have seen a moderate growth rate in GVA at Constant Prices during FY 2025-26. Real Private Final Consumption Expenditure (PFCE) has been estimated to attain a growth rate of 7.0% during FY 2025-26. Gross Fixed Capital Formation (GFCF) has been estimated to have 7.8% growth rate at Constant Prices during FY 2025-26, compared to 7.1% growth rate in the previous FY.
