CEA raises growth forecast for FY27 to 7.2-7.4%

IMPLEMENTING TRADE DEALS with large economies like the European Union and the United States will likely boost capital inflows and support consumption demand, helping the Indian economy to expand at a higher pace of 7.2-7.4% in FY27,compared with the earlier estimate of 6.8-7.2%, Chief Economic Adviser V Anantha Nageswaran said on Friday.

- PRASANTA SAHU

This signalled growing confidence in the country's medium-term growth trajectory.

The upward revision follows the release of a new national accounts data series, under which the Second Advance Estimate for FY26 pegs growth at a robust 7.6%—higher than the 7.4% calculated using the previous series and well above FY25’s 7.1%.

NOMINAL GDP GROWTH for FY27 is projected at close to 11% (as against 10% estimated earlier in the old series), which would push the economy comfortably past the $4-trillion mark in FY27, he said.