Steady growth on multiple positives

India's economy is expected to grow in the range of 6.3-6.8% in FY26, as noted in the Economic Survey, and may sustain this level of growth over a longer period despite an uncertain global and political environment, chief economic advisor (CEA) V. Anantha Nageswaran said.

- Subhash Narayan

There were several positives for India in terms of opportunities in sectors hit by US tariffs, a favourable monetary policy environment that promotes growth, the tax relief given to the middle class this year, and the progress and even distribution of the monsoon, the CEA added.

"So, if you count these positive factors, to be able to achieve the growth rate between 6.3% and 6.8% that we pencilled in the Economic Survey and sustain it for a longer period seems like a reasonable prospect. The International Monetary Fund agrees with us," Nageswaran said during his keynote address at the CII Annual Business Summit 2025 in New Delhi.

He added that, according to the IMF, India's GDP in dollar terms is expected to rise to $6.8 trillion by FY31 and that the IMF's implicit forecast on the exchange rate is that the Indian rupee will depreciate by only 0.5-0.8% a year going forward.