 "India set for over 7% GDP growth in FY26, to cross $4 trn mark: CEA")
India’s economy is on track to grow 7 per cent or north of 7 per cent in the financial year 2025–26 (FY26), Chief Economic Adviser V Anantha Nageswaran said on Friday, adding that the third quarter (October–December) has “commenced on a sound footing”.
His remarks came as the economy continued its strong momentum in the July–September quarter, with GDP rising 8.2 per cent, sharply higher than the 5.6 per cent growth recorded in the same quarter last financial year, and quicker than the 7.8 per cent in the first quarter of the current fiscal year.
The CEA added that rural demand remains resilient, while urban demand is strengthening, aided by the recent GST rate cuts. However, he also cautioned that the geopolitical risks will also continue to pass a shadow on big ticket cross border capital flows and domestic investment.
Real GDP for the second quarter of FY26 stood at ₹48.63 trillion, up from ₹44.94 trillion in Q2 FY25. Nominal GDP rose 8.7 per cent to ₹85.25 trillion during the quarter, compared with ₹78.40 trillion a year earlier.
"Indian economy would cross $4 trillion mark in the current fiscal, going by the growth numbers," Nageswaran added.
While announcing the Q1 GDP numbers in August this year, Nageswaran had estimated that the Indian economy would grow at a rate between 6.3 and 6.8 per cent in FY26.
The International Monetary Fund (IMF) earlier this week estimated the Indian economy would grow at 6.6 per cent in FY26.
What drove the Q2 growth?
Industry and services continued to anchor Q2 growth. Manufacturing expanded by 9.1 per cent, and construction grew 7.2 per cent. Within services, financial, real estate and professional segments recorded a strong 10.2 er cent rise, helping the wider tertiary sector grow 9.2 per cent in the quarter.
Agriculture and allied activities saw a more moderate 3.5 per cent increase, while electricity, gas, water supply and other utilities grew 4.4 per cent.
Overall, real gross value added (GVA) climbed 8.1 per cent to ₹44.77 trillion in Q2, up from ₹41.41 trillion in the same period last year.