India’s GDP Growth Set to Exceed 6.8% in FY26, Says Chief Economic Adviser
India’s Chief Economic Adviser V. Anantha Nageswaran has expressed strong confidence that the country will comfortably surpass its 6.8% GDP growth projection for FY26, citing GST reforms, tax relief measures, and improving investment flows as key drivers.
Key Takeaways
- CEA projects GDP growth “north of 6.8%” for FY26
- Q1 FY26 GDP already recorded strong 7.8% growth
- GST rationalization and tax relief measures boosting consumption
- US-India trade deal could further accelerate growth
Confident Growth Projection
Speaking at the CNBC-TV18 Global Leadership Summit 2025, Nageswaran stated he’s “comfortable saying even north of 6.8 per cent” for India’s growth projection, significantly upgrading from his earlier range of 6.3-6.8%. This optimism exceeds the Economic Survey’s January projection of 6.3-6.8% real economic growth for FY26.
“At this point, I’m quite confident saying growth will definitely be above 6.5%, and I’m even comfortable projecting it to be above 6.8%. However, before I talk about a 7% figure, I’d prefer to wait for the second-quarter numbers to confirm that direction,” Nageswaran said.
Growth Drivers and Potential Boosters
The CEA highlighted that the conclusion of a bilateral trade deal between the US and India could further expedite the growth pace. Recent GST reforms have also played a crucial role in stimulating the economy.
In a major tax overhaul, the government rationalized GST slabs of 5% and 18%, while maintaining 40% for ‘sin goods’. The new rates, effective from September 22, have lowered prices for most mass consumption products, aimed at boosting consumption and accelerating economic activity.
Strong Q1 Performance
India’s economy demonstrated robust momentum with GDP growing at 7.8% in the first quarter ended June 30, 2025. This performance significantly exceeded analyst expectations of 6.5-7% growth and outpaced the 6.5% growth recorded in the year-ago quarter.
The current growth trajectory suggests sustained economic momentum, with the CEA’s upgraded forecast reflecting confidence in India’s economic fundamentals and policy measures.
