India’s nominal GDP at $3.9 trillion, poised to cross $4 trillion by FY25: CEA Nageswaran

Chief Economic Adviser V Anantha Nageswaran

Chief Economic Advisor (CEA) V Anantha Nageswaran on February 28 stated that India is on the verge of surpassing a $4 trillion GDP by the financial year 2025.

"India’s nominal GDP is $3.9 trillion, so we are on the verge of crossing $4 trillion by FY25 itself," he said.

Nageswaran noted that India remained the fastest-growing major economy during the October-December quarter, with real GDP growth rebounding in Q3 FY25. Against this backdrop, he asserted that the projected 7.6 percent GDP growth for Q4 FY25 does not appear unrealistic.

On capital expenditure, he noted, "The capex of the government is very much in line with the previous financial year. Government capex has picked up steam coming into the fourth quarter."

He also observed that urban demand has strengthened, while inflation is trending downward. "Inflation is stabilizing, though certain items like food and gold had caused some distortions," he added.

CEA also highlighted the economic impact of the Mahakumbh, stating that the large-scale event is expected to contribute to India's nominal GDP from the expenditure side.

"India’s economic momentum is expected to sustain due to strong rural demand and recurring urban demand," CEA added.

Nageswaran expressed confidence that tax cuts would improve India’s medium-term economic prospects.

On crude oil prices, he noted that they are behaving favorably from India’s perspective. "Lower energy prices may offset trade-related impacts that could have otherwise posed challenges," he remarked.