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Possible shortfall in nominal GDP growth in FY26: CEA

Financial Express Ahmedabad

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September 08, 2025

GIVEN THE EXPECTATION of benign inflation, there may be a shortfall in nominal GDP growth compared to the Budget estimate of 10.1% for the current financial year, chief economic adviser V Anantha Nageswaran said.

- PRESS TRUST OF INDIA

He expressed optimism about meeting the real GDP growth target of 6.3-6.8% cent for the current fiscal year despite the US imposing a steep 50% tariff on Indian shipments.

Nominal GDP includes changes in prices caused by inflation, reflecting the impact of rising overall price levels, while real GDP is an inflation-adjusted measure that evaluates the value of all goods and services produced in a country during a specific year.

Inflation is expected to be low on account of an estimated good kharif harvest and a reduction in prices of around 400 items after landmark GST reforms were approved recently by the GST Council headed by finance minister Nirmala Sitharaman.

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