{"id":14771,"date":"2025-09-23T00:18:18","date_gmt":"2025-09-23T00:18:18","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/23\/indias-gdp-growth-in-fy26-to-tend-towards-upper-end-of-6-3-6-8-cea-anantha-nageswaran-business-news\/"},"modified":"2025-09-23T00:18:18","modified_gmt":"2025-09-23T00:18:18","slug":"indias-gdp-growth-in-fy26-to-tend-towards-upper-end-of-6-3-6-8-cea-anantha-nageswaran-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/23\/indias-gdp-growth-in-fy26-to-tend-towards-upper-end-of-6-3-6-8-cea-anantha-nageswaran-business-news\/","title":{"rendered":"India\u2019s GDP Growth In FY26 To Tend Towards Upper End Of 6.3\u20136.8%: CEA Anantha Nageswaran | Business News"},"content":{"rendered":"


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The Chief Economic Adviser said GST reforms and income tax cuts will boost demand and push FY26 growth towards the upper end of the range projected in the Economic Survey this year<\/h2>\n
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Chief Economic Advisor V. Anantha Nageswaran at the Network18 Reforms Reloaded summit. (Image: News18)<\/p>\n<\/figure>\n

At the Network18 Reforms Reloaded<\/em> summit in New Delhi, Chief Economic Advisor V. Anantha Nageswaran said the government\u2019s latest round of GST rate cuts, dubbed GST 2.0, would act as a strong stimulus for domestic demand. In a fireside chat moderated by Shereen Bhan, Managing Editor of CNBC-TV18, he expressed confidence that India\u2019s growth this year could trend towards the upper end of the 6.3\u20136.8 per cent band outlined in the Economic Survey tabled by Finance Minister Nirmala Sitharaman on January 31 this year.<\/p>\n

GST Cuts As Economic Stimulus<\/strong><\/p>\n

Nageswaran underlined that the scale of tax savings from GST 2.0 was significant, especially when combined with the income tax reliefs announced in the Union Budget. \u201cThe total amount of taxes foregone is exactly the amount of saving that households are making, coming on top of the direct tax relief,” he noted. Factoring in the multiplier effect, he said the impact on GDP could exceed Rs 2.5 lakh crore, larger than the static tax-savings figure cited by the Prime Minister.<\/p>\n

States\u2019 Revenue Concerns Addressed<\/strong><\/p>\n

On questions about the effect of GST cuts on state finances, the CEA argued that the track record showed rate reductions had not hurt collections. He pointed to earlier episodes when revenues quickly rebounded after rate cuts, aided by higher transaction volumes and formalisation. \u201cUPI transactions are growing 20\u201330 per cent year-on-year and have a high correlation with GST collections. With rate cuts, volume growth will dominate,” he said, adding that producing states too had fared better than expected since GST was introduced.<\/p>\n

Fiscal Math On Track, Q2 Near 7%<\/strong><\/p>\n

Nageswaran maintained that the government remained on course to meet its fiscal deficit target of 4.4 per cent of GDP this year. Strong non-tax revenue growth and sustained consumption during the festive season, he said, would help keep the numbers steady. Based on high-frequency indicators, he added that second-quarter GDP could come close to the 7 per cent mark, though he refrained from making a formal forecast.<\/p>\n

Tariffs And Global Risks<\/strong><\/p>\n

The CEA acknowledged that the new US tariffs would weigh on India\u2019s exports but said the GST stimulus would soften the blow. Without the tax cuts, tariffs could have shaved off 0.4\u20130.5 percentage points from this year\u2019s GDP growth and about 1 per cent next year. With GST relief now factored in, he said the overall impact would likely be lower.<\/p>\n

H-1B And Outsourcing Moves Not Immediate Concern<\/strong><\/p>\n

Asked about the Trump administration\u2019s new $100,000 H-1B visa fee and proposals such as a 25 per cent tax on outsourcing, Nageswaran played down immediate risks. He stressed that the visa fee would only take effect in 2026 and affected new issuances, not renewals. On the outsourcing bill, he called it \u201ca private initiative” still far from becoming law, and said there was no need for pre-emptive concern.<\/p>\n

India Still A Top FDI Destination<\/strong><\/p>\n

Nageswaran insisted that foreign investor interest in India remained strong despite global uncertainty. He cited first-quarter FDI inflows of $25 billion, an annual run rate of $100 billion, compared to $80 billion last year. \u201cIn the conversations I have had in the last one month, India remains a top investment destination. I haven\u2019t seen any diminishing of that interest,” he said, pointing to India\u2019s position as an alternative in the \u201cChina plus one” framework.<\/p>\n

Next Policy Priorities: Deregulation, Energy And Education<\/strong><\/p>\n

Looking ahead, the CEA said the focus would shift from boosting demand to structural reforms. He highlighted three priorities:<\/p>\n