At 7%, mfg expected to stay robust

The manufacturing sector remained robust and is estimated to grow by 7% in 2025-26 as opposed to 4.5% last fiscal while construction continued to be healthy at a growth rate of 7%, compared with an increase of 9.4% in 2024-25. Nominal GDP, which accounts for inflation, is estimated to grow by 8% in 2025-26.The crucial farm sector is estimated to grow by 3.1% in 2025-26, slower than the 4.6% registered last year but still robust. The mining sector is seen contracting by 0.7% in 2025-26 compared with a growth of 2.7% last year.

“The first advance estimates of the GDP in general show a flat aggregate demand in FY26. The heads that have positively contributed include govt consumption with a growth of 5.2% in real terms. Exports have also held the forte with positive growth of 6.4%. Private consumption growth was tad lower at 7.0%, possibly due to slowdown in the agriculture sector. Per capita consumption registered a growth of 6.1%,” said Soumya Kanti Ghosh, group chief economic adviser at State Bank of India.“Uptick in govt consumption, traction in services has held up the demand in FY26, cushioning the impact of external headwinds,” Ghosh said in a note.