India's potential GDP growth could reach 7.5% to 8% in the coming years, according to Chief Economic Advisor (CEA) V. Anantha Nageswaran, provided the nation focuses on key structural reforms. Speaking on Thursday, January 29, 2026, Nageswaran highlighted the importance of enhancing manufacturing and export competitiveness, alongside addressing critical issues such as land acquisition and reducing production costs.
The Economic Survey 2025-26, which was presented to Parliament, reflects this optimism, upgrading India's medium-term growth outlook to 7%. This is a notable increase from the 6.5% projected three years prior. The survey projects a GDP growth in the range of 6.8-7.2% for fiscal year 2027, acknowledging the economy's resilience amidst global volatility. The current fiscal year is estimated to reach 7.4%.
Nageswaran emphasized that the "reform momentum" over the past three years, encompassing manufacturing, logistics, infrastructure, and regulatory processes, has fortified the foundation for medium-term expansion. Initiatives such as Production-Linked Incentive (PLI) schemes, FDI liberalization, logistics reforms, and sustained public investment in both physical and digital infrastructure are collectively supporting capacity creation. Furthermore, the CEA noted that simplified tax laws, regulatory streamlining, and measures aimed at bolstering MSMEs, including expanded credit guarantees, TReDS, and the Unified Lending Interface, have further facilitated ease of doing business.
In addition to these reforms, Nageswaran pointed out the significant strides made in infrastructure development. Operational high-speed highway corridors have expanded nearly tenfold over the past 11 years, while inland water transport has grown at a compound annual rate of 21%. India has also witnessed a sharp decline in data costs, now among the lowest globally, coupled with a rise in broadband subscribers. Moreover, administrative reforms have led to a significant reduction in application approval timelines, by approximately 90%, through the centralized Right of Way portal, thereby expediting project execution.
Nageswaran also addressed concerns surrounding the rupee, attributing its recent depreciation to global interest rate hikes and capital outflows, rather than domestic macro instability. He stated that India's foreign exchange reserves have more than doubled in 11 years, climbing from $341 billion to $701 billion.
The CEA highlighted that India has created approximately 15 million jobs in the past two years, which is double the projection from the previous Economic Survey. He attributed this job creation to exports and deregulation, considering them as two sides of the same coin. Nageswaran also expressed optimism that the recently concluded India–European Union trade agreement would unlock new opportunities, particularly for labor-intensive sectors like leather, footwear, and textiles.
Quoting Robert Frost, Nageswaran stated, "We have promises to keep and miles to go before we can sleep," underscoring the ongoing commitment to reforms and growth. He emphasized that with continued efforts to enhance manufacturing and export competitiveness, address land-related issues, and reduce manufacturing costs, India can realistically aim for a growth rate of 7.5% to 8% in the coming years.
