Indian economy to cross $4 trillion mark this fiscal; GDP growth may exceed 7%: CEA Nageswaran

Backed by robust second-quarter growth numbers, Chief Economic Advisor V Ananth Nageswaran on Friday (Nov 28) said that the Indian economy is set to cross the $4 trillion mark in the current financial year, with the economy poised to grow over 7 per cent in the financial year 2025-26. CEA Nageswaran also underlined that the Indian economy does stand out as a "relative oasis of tranquillity, stability and growth" amid the current uncertain global environment.

Briefing the media after the release of Q2 GDP data, Nageswaran said the economy's current trajectory paves the path to surpass $4 trillion mark. India's GDP stood at $3.9 trillion at the end of March 2025, making it the world’s fifth-largest economy.

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His comments came at a time when the economy maintained strong momentum in the July–September quarter, posting GDP growth of 8.2 per cent, well above the 5.6 per cent recorded in the same period last year and faster than the 7.8 per cent achieved in the first quarter of the current fiscal.

India posted a strong Q2 growth number supported by an expansion in manufacturing activity at 9.1 per cent, construction surged 7.2 per cent, while services reported a two-digit growth. The GST cuts announced near Diwali aided factory output.

Referring to Q2 figures, Nageswaran said, "outside the range of most of the optimistic estimates" of many.

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The CEA also noted that India’s macro fundamentals remain robust "The economic robustness is due to continued trust in public investment, deregulation in the union and state governments, employment-linked incentive schemes that have been announced, and continued credit support to micro, small and medium enterprises and also nano-enterprises through various schemes," Nageswaran added.

According to the Economic Survey 2024–25, presented on January 31, India must maintain an average growth rate of about 8 per cent at constant prices for the next 10–20 years to achieve the ‘Viksit Bharat’ vision of becoming a developed nation by 2047.