CEA Nageswaran: India on Track for 7% GDP Growth in FY26

• Chief Economic Advisor (CEA) V. Anantha Nageswaran said India’s economy has shown strong resilience to global challenges and is likely to achieve around 7% real GDP growth in FY26.
• He was speaking at the India Maritime Week, highlighting the country’s steady economic momentum despite external headwinds.
• Global rating upgrades:
  – Three international rating agencies have recently upgraded India’s sovereign ratings.
  – If India maintains this trajectory, it could soon enter the ‘A’ rating category, reducing borrowing costs.
• Economic resilience factors:
  – Strong policy support from the government and RBI has strengthened India’s economic fundamentals.
  – Recent policy measures, including income tax relief and GST rationalization, have boosted growth prospects.
• Earlier growth forecasts:
  – Nageswaran had earlier predicted growth could slow to 6-6.3%, but stronger demand and policy action have revised the outlook upward.
• Credit and funding growth:
  – Responding to concerns over slow bank credit growth, Nageswaran noted that total resource mobilization, including funds from NBFCs, commercial papers, and equity markets, has risen 28.5% annually over the past six years.
  – The RBI’s rate cuts and liquidity measures have ensured ample funds for industry and investment.
• Global context:
  – The next 20 years will bring fragmented, unpredictable markets, unlike the integrated global economy of the past decades.
  – Nageswaran said India must stay prepared and adaptable to thrive in a more competitive environment.
• Maritime industry outlook:
  – The Indian maritime sector faces challenges like raw material sourcing, infrastructure gaps, and technology shortages.
  – The government remains proactive in supporting and reforming the maritime ecosystem.
•  Financing opportunities:
  – K. Rajaraman, Chairman of the International Financial Services Centres Authority (IFSCA), said the maritime and ports sector’s funding needs may exceed USD 300 billion.