New Delhi: Chief Economic Adviser (CEA) V Anantha Nageswaran on Friday expressed strong optimism about India’s economic outlook, stating that the country is poised to achieve 7% or even higher GDP growth in the current financial year. His remarks came after India posted an impressive 8.2% GDP growth rate in the second quarter—significantly surpassing expectations.
The Economic Survey, tabled in Parliament in January, had projected real economic growth of 6.3% to 6.8% for FY26. However, with growth momentum picking up faster than anticipated, the outlook has strengthened considerably.
Addressing the media following the release of the Q2 GDP data, Nageswaran said India is on track to cross the USD 4 trillion mark this fiscal, driven by robust economic expansion. India’s Gross Domestic Product stood at USD 3.9 trillion at the end of March this year.
With the economy registering 8% growth in the first half of the financial year, the CEA noted that the estimated full-year growth is now around 7% or above.
The latest data showed that the Indian economy expanded at a six-quarter high of 8.2%, powered by increased factory activity, particularly ahead of a potential consumption boost following recent GST rate cuts. This surge in manufacturing offset the slowdown in the agriculture sector.
Growth in the second quarter—compared to 7.8% in Q1 and 5.6% in the same quarter last year—was also supported by an impressive performance in the services sector, which recorded double-digit growth.
Nageswaran noted that the third quarter (October–December) has “commenced on a sound footing,” with encouraging trends across multiple sectors.
He further highlighted that rural demand remains resilient, while urban demand is strengthening, driven in part by the post-GST rate cut impact on consumer sentiment and spending.