Chief Economic Advisor V. Anantha Nageswaran stated that India is poised to become the world’s third-largest economy in the coming years, with a real GDP growth rate of 7.8% for Q3 FY26 and 7.6% for the full financial year based on the new series with 2022-23 as the base year. Nageswaran highlighted India’s strong post-Covid growth, ranking among the best globally, especially within the G20 economies.
He emphasized that India’s relative position will also be influenced by various factors like the exchange rate, which did not favor the country in 2025. Nageswaran stressed the importance of focusing on aspects within India’s control, with policies and reforms geared towards achieving sustained non-inflationary growth of at least 7% in real terms and 10 to 11% in nominal terms.
Nageswaran pointed out that trade agreements and advancements in India’s AI ecosystem could transform what was once seen as a weakness in 2025 into a strength, enhancing capital flows and stabilizing the exchange rate. He anticipated that the dollar value of India’s GDP will better reflect the country’s economic performance in the future.
Dr. Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation (Mospi), noted that the revised GDP series provides a more accurate and robust representation of the Indian economy. He highlighted that the actual implications of these numbers will be revealed over time.
