GST Reforms, Labour Codes and Tax Overhaul Power India's Growth: CEA Nageswaran

Last updated: 02 December 2025


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.




News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.


Comments



More »


Popular News





CCI Pro



Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details