New Delhi, Jan. 7 -- India's economy is expected to grow 7.4% in the current financial year, powered by strong manufacturing and services growth, healthy household spending and strong investments in fixed assets, official data showed on Wednesday.

The statistics ministry's first advance estimates, which come ahead of the Union budget for FY27 and will be the basis for budget calculations, showed that in nominal terms, India's GDP is expected to grow 8% in the current year.

The government makes projections about tax revenue collection growth as well as macro ratios of fiscal deficit, tax buoyancy and the Centre's debt in terms of nominal GDP.

The projected real GDP growth in FY26 follows a 6.5% growth in FY25 and a 9.2% expansion in FY2...