What is the Projection for India’s Real GDP Growth in FY26?

New Delhi, July 3 (NationPress) The projected real GDP growth of India is estimated to be within the range of 6.4-6.7 percent for FY26, solidifying the nation’s status as the fastest-growing major economy globally, according to the Confederation of Indian Industry (CII) on Thursday.

CII President Rajiv Memani highlighted that amidst unprecedented global economic and political challenges, India shines as a beacon of hope in a fractured international landscape.

Addressing attendees at a CII event in the capital, Memani emphasized that competitiveness is essential for India's prosperity.

"This must be cultivated through reform, innovation, and trust. CII is dedicated to collaborating with the government, industries, and citizens to boost India’s emergence as a confident, competitive, and globally integrated economy," he stated, noting that India's internal dynamics are robust enough to absorb external disruptions.

In a rapidly evolving global environment concerning trade and technology, we need to root India’s growth in competitiveness, focusing on scale, productivity, innovation, and resilience. This is our opportunity, and we must act decisively to capitalize on it, he stressed.

To adequately address developmental and infrastructure requirements while ensuring fiscal stability, CII recommends enhancing government revenues through strategic disinvestment in public sector enterprises.

Approximately 10 percent of the overall market capitalization, estimated at around Rs 55 lakh crore, is tied up in public sector enterprises (PSEs).

"By divesting about 10 percent of this market cap, we could potentially generate around Rs 5 lakh crore. These funds could be directed toward increasing public capital expenditure, reducing government debt, establishing a Sovereign Wealth Fund for strategic investments abroad, and acquiring critical technologies," the CII President noted.

To tackle the issue of India's 'missing middle', CII has proposed a Capital Support Scheme aimed at small and medium enterprises in the manufacturing sector focusing on R&D, technology acquisition, and job creation.

To reduce business costs linked to land, the leading industry association suggested forming a dedicated Taskforce on 'Land Availability at Affordable Rates' to formulate policy recommendations that would enhance manufacturing sector competitiveness.

“To achieve India’s ambitious energy transition targets, CII advocates for the development of sector-specific strategies, particularly for mobility, and the proactive establishment of Green Hydrogen and Renewable Energy hubs. CII will also launch a Mission on Energy Transition to motivate industries to adopt low-carbon alternatives,” it added.