India’s economic growth is in a “comfortable range” and projected to rise, said the country’s Chief Economic Advisor (CEA), V Anantha Nageswaran.
While Nageswaran attributes the real economic growth figure of 6.8 per cent for FY26 to the GST rate cut announced by the government in September, he said the finalisation of a bilateral trade agreement (BTA) between India and the US, were it to happen, would further help elevate India’s growth.
The Economic Survey tabled in the parliament in January had projected real economic growth of 6.3-6.8 per cent for FY26.
“I’m comfortable looking at a number north of 6.8 per cent now. My original range was 6.3 to 6.8 per cent (as projected in the Economic Survey). Back in August, we were all concerned about whether we would even go towards the lower end of the 6-7 range,” he said at a global leadership event held in New Delhi on Friday.
The GST Council announced a major Goods and Services Tax (GST) overhaul early September, which was implemented from September 22, leading to a boost in consumer demand since most essentials became cheaper.
“Now, I think there is a lot of comfort in saying that it would be definitely north of 6.5 and I am more comfortable saying even north of 6.8, but whether I will put a 7 handle in front of it, I will wait for the second quarter numbers to come out before I move even a notch higher,” Nageswaran said.
Also Read: US penal tariff on Indian goods may end after November 30: CEA
India recorded an encouraging 7.8 per cent gross domestic product (GDP) growth in the first quarter of the ongoing fiscal year, mainly driven by a good showing by the farm sector, and also helped by services like trade, hotel, financial and real estate.
The previous highest pace of growth in the country’s GDP was recorded at 8.4 per cent during January-March quarter of 2024, as per the data.
In the meanwhile, India remains the fastest-growing major economy, as China’s GDP growth in the April-June period was just 5.2 per cent.
Nageswaran said he hopes a bilateral trade deal between the US and India is concluded soon, which would further boost the country’s growth.
“If by some chance, as we are still hoping, there is a resolution on the trade front, then the upward bias will become a mainstream forecast,” he said.
The US imposed a steep tariff of 50 per cent – among the highest in the world – on goods from India on August 27. This includes a 25 per cent penalty for buying crude oil from Russia.
The Trump administration enforced an additional 25 per cent tariff on Indian goods, citing India’s persistent oil imports from Russia and long-standing trade barriers.
Follow us
