Will India’s GDP Growth Exceed 7% in 2025-26? Insights from CEA Nageswaran
Click to start listening
Synopsis
India is on track for a GDP growth of over 7% in 2025-26, as indicated by CEA Nageswaran. With a notable surge in Q2 growth to 8.2%, the economic outlook remains promising. Discover the factors driving this growth and the challenges posed by US tariffs.
Key Takeaways
- India's GDP growth is projected to exceed 7% in FY 2025-26.
- Q2 growth reached an impressive 8.2%, following a 7.8% growth in Q1.
- Strong agricultural output and increased credit are driving economic momentum.
- Challenges include the impact of US tariffs on Indian exports.
- IMF anticipates India’s economy to remain robust compared to global trends.
New Delhi, Nov 28 (NationPress) The Chief Economic Advisor (CEA) of the Central government, V. Anantha Nageswaran, announced on Friday that India is poised to achieve a GDP growth rate of 7% or more for the fiscal year 2025-26. This projection follows the official release of figures indicating a remarkable 8.2% growth in Q2, building on a solid 7.8% increase in Q1.
During a press briefing regarding the second-quarter GDP results, Nageswaran highlighted that India’s economic growth continues to surpass that of other major economies.
He noted, "In the first half of FY26, the real GDP growth for India stands at 8%, with expectations for the full year to be at least 7% or more than 7%."
Nageswaran pointed out that the agricultural output for 2024-25 suggests a record harvest, alongside an increase in non-food credit and positive high-frequency indicators like PMI and freight movement, indicating sustained economic momentum.
Moreover, he emphasized the robust demand in both rural and urban sectors, attributing this stability to manageable inflation that has bolstered household savings.
Nageswaran remarked, "We are witnessing a dynamic economy, reflecting the cumulative benefits of investments made in physical and digital infrastructure over the past 10-11 years, along with the resilience shown by exporters in response to tariff shocks and policy measures enacted since June 2024."
However, he acknowledged the negative effects of increased US tariffs on Indian goods, stating, "While exporters are striving to locate alternative markets, there remains a significant adverse impact."
The CEA further commented that the third quarter began on a solid footing and that employment conditions in the Indian economy remain stable.
According to statistics from the Ministry of Statistics released on Friday, India’s GDP growth accelerated to an impressive 8.2% in the second quarter (July-September) of the current fiscal year, compared to 5.6% in the same quarter of FY 2024-25.
The growth in the secondary and tertiary sectors, which recorded 8.1% and 9.2% growth rates respectively, significantly contributed to the real GDP growth rate in Q2 of FY 2025-26.
The IMF has projected that India will be the only major economy expected to achieve a growth rate exceeding 6% in 2025-26, amidst anticipated disruptions in global trade due to US tariff issues.
Point of View
It's essential to highlight the significant economic indicators released by the CEA. India's projected GDP growth exceeding 7% showcases resilience and a promising trajectory, despite external challenges like US tariffs. This narrative reflects the enduring strength of the Indian economy and its potential for sustained growth, making it a critical focus for our audience.
NationPress
28/11/2025
Frequently Asked Questions
What is the projected GDP growth rate for India in 2025-26?
The projected GDP growth rate for India in 2025-26 is likely to be 7% or more, according to Chief Economic Advisor V. Anantha Nageswaran.
How did India’s GDP perform in Q2 of FY 2025-26?
In Q2 of FY 2025-26, India’s GDP growth surged to 8.2%, following a robust 7.8% growth in Q1.
What factors are contributing to India’s economic growth?
Key factors contributing to India’s economic growth include strong agricultural output, rising non-food credit, and consistent demand in both rural and urban sectors.
What challenges does India face regarding its GDP growth?
A significant challenge for India’s GDP growth is the adverse impact of increased US tariffs on Indian goods, affecting exporters and trade dynamics.
What role does the IMF play in assessing India's economy?
The IMF has projected that India will be one of the few economies to achieve a growth rate exceeding 6% in 2025-26, highlighting its resilience amid global economic challenges.
