Chief Economic Advisor (CEA) V Anantha Nageswaran on November 28, 2025, said that India's ongoing structural reforms, ranging from labour law modernisation to GST rate rationalisation and the new personal income tax regime, are significantly boosting the country's efficiency and global competitiveness.
Speaking at a media briefing after the release of the July-September Quarterly GDP Estimates, the CEA noted that strong macroeconomic fundamentals, stable inflation and sustained public capital expenditure have helped India remain resilient amid global uncertainties. "These positive factors have led multiple agencies to revise India's FY26 GDP growth projections upward," he said.
Robust Growth Backed by Manufacturing & Services
India's growth momentum remains strong, supported by a broad-based expansion across manufacturing and services. Festive season demand, coupled with gains from GST reforms, has further accelerated economic activity during the quarter.
Nageswaran highlighted that core inflation has remained stable, thanks to timely Rabi sowing and adequate reservoir levels-factors that are expected to keep food prices in check in the coming months.
Revenue Strength and GST Collections
Government revenues continue to demonstrate resilience. The CEA pointed out that GST collections grew by 9% during April-October 2025, reflecting strong consumption trends and improved tax compliance. This, he said, underscores the robustness of India's revenue ecosystem despite challenging global conditions.
Household Income & Investment Outlook Brighten
The improving price environment and recent tax reforms are expected to boost household disposable incomes, strengthening near-term consumption. On the investment front, healthy corporate balance sheets are likely to support private sector capital expenditure in the second half of FY26.
GDP Data Shows Strong First-Half Performance
According to the latest official data, India's nominal GDP grew 8.7% in the September 2025 quarter. Real GDP growth stood at 8.0% in H1 FY26 (April-September), significantly higher than 6.1% recorded during the same period last year.
In the April-June quarter alone, real GDP expanded by 7.8%, compared to 6.5% in the previous fiscal. Nominal GDP growth in the quarter stood at 8.8%. For context, the Indian economy grew 6.5% in real terms during 2024-25.
India Remains Fastest-Growing Major Economy
The Reserve Bank of India had earlier projected a 6.5% GDP growth rate for FY25. India has consistently outperformed major global economies, recording 9.2% growth in 2023-24 and 7.2% in 2022-23. Growth rates stood at 8.7% and 7.2% in 2021-22 and 2022-23, respectively.
Path to 'Viksit Bharat'
For India to achieve the vision of Viksit Bharat by 2047, the Economic Survey 2024-25 stressed the need for sustained growth of around 8% at constant prices over the next decade or more. With reform momentum and strong macroeconomic indicators, the CEA said India remains on a promising trajectory.
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