India's Chief Economic Adviser V. Anantha Nageswaran forecasts full-year GDP growth of 7% or higher for FY 2025-26, upgrading from earlier 6.3-6.8% projections. Strong Q1 performance, GST relief, and private capex revival underpin the optimism, positioning India to cross $4 trillion GDP milestone despite geopolitical flux.
Chief Economic Adviser V. Anantha Nageswaran expressed confidence in India's economic trajectory, projecting FY26 growth at 7% or north of it—elevating prior estimates amid robust Q1 expansion of 7.8% led by services (9.3%) and manufacturing (7.7%). He highlighted GST rate cuts and income tax relief boosting consumption, alongside private capex resurgence after 2023-24 softness.
Speaking at events like IVCA GreenReturns Summit and CNBC-TV18 Global Leadership Summit, Nageswaran noted the economy's path to exceed $4 trillion GDP (from $3.9 trillion at FY25-end), stressing growth's role in job creation (8 million/year), energy needs, and climate adaptation. Reforms, digital/physical infrastructure, and trade resolutions could further accelerate momentum.
While cautious on Q2 data before firming 7%+, the outlook underscores India's resilience as the fastest-growing major economy, outpacing IMF's 6.6% FY26 view.
Key highlights
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FY26 growth forecast: 7%+ (up from 6.3-6.8% band).
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Q1 drivers: Services +9.3%, manufacturing +7.7%; overall 7.8%.
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Catalysts: GST/income tax relief, private capex revival, reforms.
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Milestone: $4 trillion+ GDP targeted in FY26.
Sources: Economic Times; Business Standard; IBEF; Tribune India; ANI.