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Informist, Thursday, Jan. 29, 2026

 

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--CEA: See medium-term growth potential at over 7.5% with structural reforms 
--CONTEXT: CEA Nageswaran's comments at media briefing on FY26 Econ Survey 
--CEA: Mfg strength, goods exports growth key to stable rupee 
--CEA:Cutting general govt debt more crucial post global index bond inclusion 
--CEA:States' fisc indiscipline casting shadow over sovereign borrowing cost 
--CEA: Sure of maintaining current growth rate even after base year revision 
 

 

NEW DELHI – India's medium-term growth potential could rise over 7.5%, maybe closer to 8%, if the government undertakes more structural reforms and deregulation exercises, Chief Economic Adviser to the government V. Anantha Nageswaran said Thursday. The Economic Survey for 2025–26 (Apr-Mar), authored by the CEA's team, has projected India's medium-term growth potential at around 7%.

 

The Economic Survey for FY26, released by Finance Minister Nirmala Sitharaman Thursday, raised the medium-term growth potential to 7% from 6.5% projected three years ago. "Policy reforms over recent years appear to have lifted the economy's medium-term growth potential closer to 7%," the Survey said. 

 

Structural reforms to strengthen manufacturing can also enhance India's export competitiveness, Nageswaran said, adding that these metrics are also key to a stable currency. The rupee, which has fallen over 2% in January alone, closed at a record low of 91.9550 on Thursday.

 

Besides structural reforms, a trade deal with the US, which can lower the current steep tariffs on Indian goods, could also bolster the chances of medium-term growth rising over 7%, according to Nageswaran. But the current projection of 7% does not depend on the tariff situation, Nageswaran said at a press briefing on the Economic Survey for FY26.

 

The Economic Survey has estimated a growth of 6.8–7.2% for the Indian economy in FY27. GDP is poised to grow 7.4% in FY26. The government's top economist is confident of India maintaining the current growth trajectory even after revision in the base year for the new GDP series. The statistics ministry will introduce the new GDP series with FY23 as the base year in February. Subsequent GDP data releases will be based on FY23 prices. 

 

Further, talking about the fiscal policy of the government, Nageswaran said the states' fiscal indiscipline has been casting a shadow over sovereign borrowing costs. He has also suggested in the Economic Survey that state governments need to calibrate and improve their expenditure quality. Better fiscal discipline and cutting general government debt levels are more crucial now in the aftermath of Indian bonds' inclusion in global indices like Bloomberg's Emerging Market local currency indices and JP Morgan's Government Bond Index – Emerging Market suite, the CEA said.  End 

 

Reported by Krity Ambey

Edited by Tanima Banerjee

 

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