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.

However, agriculture and allied sector and 'electricity, gas, water supply and other utility services' sectors are estimated to witness moderate growth rate in the current fiscal ending March 31.

The ministry further said that nominal GDP or GDP at current prices is estimated to grow at 8 per cent during 2025-26.

The advance estimates data is used in preparation of the Union Budget, likely to be presented on February 1.