India's GDP Growth Projected to Exceed 7% in FY26 as Economy Approaches USD 4 Trillion Milestone

V Anantha Nageswaran has indicated that the Indian economy is projected to surpass the USD 4 trillion mark in FY26.

New Delhi:

Following the impressive 8.2 percent GDP growth rate in the second quarter, Chief Economic Adviser V Anantha Nageswaran expressed confidence on Friday that India's economy is on track to achieve a growth rate of 7 percent or higher in the current financial year.

The Economic Survey presented to Parliament in January had initially forecast real economic growth between 6.3 and 6.8 percent for FY26.

During a media briefing after the release of second-quarter GDP figures, Nageswaran stated that at the current growth trajectory, the Indian economy is expected to exceed USD 4 trillion in the current fiscal year.

He noted that India's Gross Domestic Product, which measures the economy's size, reached USD 3.9 trillion by the end of March this year.

With the economy recording an 8 percent growth rate in the first half of the current financial year, Nageswaran revised the full-year GDP growth forecast to 7 percent or potentially higher.

The Indian economy's growth at 8.2 percent—a six-quarter high—exceeded expectations as increased factory production anticipating consumption benefits from GST rate reductions helped counterbalance the slowdown in agricultural output.

The second quarter's growth, which compared favorably to 7.8 percent in the previous three months and 5.6 percent in the same period last year, was further bolstered by strong performance in the services sector, which achieved double-digit growth.

Nageswaran highlighted that the third quarter (October-December) of the current fiscal year has begun with strong economic indicators.

He also observed that rural demand continues to show resilience while urban demand is gaining momentum following the GST rate reductions.