NEW DELHI: The Indian economy is likely to grow at 7.4 per cent in 2025-26, up from 6.5 per cent in the previous fiscal, mainly on account of better performance of manufacturing and services sectors, as per the government data released on Wednesday.

According to the first advance estimates of national income released by Ministry of Statistics & Programme Implementation (MoSPI), manufacturing and construction are estimated to achieve a growth rate of 7 per cent.

“Buoyant growth in the services sector has been found to be a major driver in the estimated real GVA (gross value added) growth rate of 7.3 per cent in FY 2025-26,” MoSPI said.