New Delhi— Chief Economic Advisor V. Anantha Nageswaran said on Friday that India’s economic growth is likely to reach 7 per cent or more in the financial year 2025–26, after official data showed strong performance in the first half of the current fiscal.
At a press briefing on the second-quarter GDP results, Nageswaran said India continued to outpace major global economies. “In the first half of FY26, the economy recorded 8 per cent real GDP growth, and the full-year expansion would be 7 per cent or more,” he said.
India’s GDP grew 8.2 per cent in the July–September quarter, up from 7.8 per cent in the first quarter. Data from the Ministry of Statistics showed that the secondary and tertiary sectors grew 8.1 per cent and 9.2 per cent, respectively, helping push overall GDP growth above 8 per cent in Q2.
Nageswaran pointed to several positive indicators, including expectations of a record agricultural harvest for 2024–25, rising non-food credit, and continued strength in high-frequency indicators such as PMI and freight movement. He said both rural and urban demand remained firm, while stable inflation supported household savings.
He also highlighted the “cumulative positive impact” of more than a decade of investments in physical and digital infrastructure, along with exporters’ efforts to adapt to tariff-related disruptions and policy measures introduced since June 2024.
However, the CEA noted challenges from higher US tariffs on Indian goods. “Despite stellar efforts by exporters to find other markets, there is naturally still a negative impact,” he said.
Nageswaran added that the third quarter had begun on a “sound footing” and that employment conditions remained steady.
According to IMF projections, India is expected to be the only major economy to achieve over 6 per cent growth in 2025–26, even as global trade faces pressures from tariff disputes and a slowdown in worldwide economic activity. (Source: IANS)
