Is India on Track to Surpass 6.8% GDP Growth in FY26?
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Synopsis
Will India surpass the projected 6.8% GDP growth in FY26? Chief Economic Adviser V. Anantha Nageswaran reveals insights on private capital expenditure, foreign investments, and the future of India's economy amidst global uncertainties. Discover how these factors contribute to a promising fiscal outlook.
Key Takeaways
- GDP growth expected to exceed 6.8% in FY26.
- Strong private capital expenditure indicates economic resilience.
- Increased foreign direct investment signals investor confidence.
- Importance of a robust regulatory framework for economic success.
- Focus on integrating into global supply chains.
Mumbai, Nov 7 (NationPress) Chief Economic Adviser V. Anantha Nageswaran stated on Friday that India’s private capital expenditure remains strong despite global uncertainties, with expectations for GDP growth to exceed 6.8 percent in the current fiscal year (FY26).
During an event, he hinted at a possible upward adjustment in GDP growth forecasts following the Q2 data, noting a recovery in private capital spending and rising foreign investments.
The CEA emphasized that the initial five months of the year have already recorded net FDI inflows significantly higher than the previous two years. Nageswaran remarked that FY 2024-25 has been a remarkably positive year for private capital expenditure, challenging notions of an economic slowdown.
Nageswaran pointed out that private capital expenditure, which lagged in FY24, has seen a strong resurgence in FY25, suggesting that investment activity is gaining momentum.
The CEA underscored the necessity of a robust regulatory and legal framework to facilitate success across various sectors, including addressing inverted duty structures.
He asserted that India’s strategy should focus on integrating into global supply chains and boosting domestic manufacturing capabilities rather than attempting to relocate all production.
Nageswaran mentioned that a US-India tariff agreement could be concluded soon. He described India's recent surge in consumption as primarily a supply-side expansion driven by strong investment momentum.
Earlier in the same event, SEBI Chairperson Tuhin Kanta Pandey remarked that India’s enduring economic strength and progression toward the 'Viksit Bharat' goal will be significantly influenced by its capital markets.
He also noted that companies have raised approximately Rs 2 lakh crore from the primary market this year, reflecting strong investor confidence.
Pandey highlighted structural opportunities, noting that mutual fund assets under management are below 25 percent of GDP, with urban participation at around 15 percent and rural participation at 6 percent.
Point of View
It is essential to acknowledge the robust economic indicators highlighted by CEA Nageswaran. The growth in private capital expenditure and FDI reflects a resilient economy adapting to global challenges. The focus on integrating into global supply chains and enhancing domestic capabilities will be crucial for sustained growth. Our nation stands firm in its economic strategies, aiming for a prosperous future.
NationPress
07/11/2025
Frequently Asked Questions
What is the expected GDP growth for India in FY26?
India is projected to achieve GDP growth exceeding 6.8% in FY26, according to Chief Economic Adviser V. Anantha Nageswaran.
How is private capital expenditure performing in India?
Private capital expenditure in India remains robust, showing a strong rebound in FY25 after a slowdown in FY24.
What role do foreign investments play in India's economy?
Foreign investments have significantly increased, with net FDI inflows meaningfully higher than the last two years, contributing to economic growth.
What is the importance of a regulatory framework for India's economy?
A robust regulatory and legal framework is essential for enabling success across sectors and correcting inverted duty structures.
How is India planning to enhance its manufacturing capabilities?
India's strategy focuses on connecting with global supply chains and boosting domestic manufacturing capabilities rather than relocating all production.
