India's growth rate revised up by 20 bps to 7-7.4% for FY27: CEA

CEA V Anantha Nageswaran (File image)

The government has revised the GDP growth forecast for FY27 to 7-7.4% from 6.8-7.2% projected earlier in the economic survey, Chief Economic Adviser V Anantha Nageswaran said in a press conference on Friday.

Nageswaran cited a reduction in external uncertainties due to a framework agreement with US -- the main factor for revising growth forecast higher.

He said that due to the agreement there will be more capital flows into India, a higher capital formation in the next financial years , which will also push up consumption.

Also, the new GDP series would make the dollar value of the Indian GDP reflect better the true underlying performance of Indian economy in the years to come, said the CEA.

On the fiscal deficit target for FY26, Nageswaran said the lower nominal GDP figure -- revised due to new series -- will lead the figure come in at 4.5% of the GDP, slightly higher than 4.4% pegged in the revised estimate.

The rest other indicators, including capex-to-GDP ratio, would largely remain unchanged, he added. "GDP revisions don't alter fiscal trajectory that union government is on at this point."

Moreover, on exports, Nageswaran said that India's exports with EU and US would lead to a better growth in exports in 2026-27.

The GDP data released today by the statistics ministry shows FY26 GDP growth to come in at 7.6%. The Q4 figure as a result would be 7.3% said the CEA.

In the first three quarters of FY26, GDP has grown by 7.7%. "Overall private consumption growth is quite resilient. Rural consumption is strong," said the CEA.

He added that manufacturing growth rate has remained exemplary in the past three years.