NEW DELHI — India is firmly on track to become the world’s third-largest economy within the next few years, Chief Economic Advisor V. Anantha Nageswaran said Friday, citing strong post-pandemic growth and improved macroeconomic fundamentals.
Responding to a question at a press conference, Nageswaran said there is little doubt about India’s upward trajectory, noting that the country’s real GDP growth was estimated at 7.8 percent for the third quarter of FY26 under the new GDP series with 2022–23 as the base year. Full-year growth is projected at 7.6 percent.
“Our growth rate post-Covid has been probably one of the best, if not the best, in the world — especially among the G20 economies,” he said.
However, he cautioned that global rankings depend on several external factors, including exchange rate movements. “Whether a particular relative position is reached or not will also depend on many other factors, like the exchange rate, which in India’s case did not go in our favour in 2025. That will naturally have an impact,” Nageswaran said.
He emphasized that policymakers should concentrate on areas within domestic control. “Both the policy and the reform directions are paving the way for sustained non-inflationary growth of at least 7 percent in real terms, and 10 to 11 percent in nominal terms in India,” he said.
Nageswaran also highlighted the role of trade agreements and the evolving artificial intelligence ecosystem in supporting long-term growth. He suggested that developments once seen as challenges in 2025 could ultimately strengthen India’s position.
“These things will improve capital flows and stabilise the exchange rate. The dollar value of the Indian GDP will reflect better the true underlying performance of the Indian economy in rupee terms in the years to come,” he said.
Dr. Saurabh Garg, Secretary at the Ministry of Statistics and Programme Implementation (MoSPI), said the revised GDP series presents a more robust and accurate picture of the Indian economy.
“Where these numbers will actually lead, that’s something the numbers themselves will say,” Garg added. (Source: IANS)
