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  3. India in ‘sweet spot', GDP growth to be over 7% in FY26: FICCI President

India in ‘sweet spot', GDP growth to be over 7% in FY26: FICCI President

03 Dec 2025 Evaluate

Federation of Indian Chambers of Commerce and Industry (FICCI) President Anant Goenka has said that India is in a 'sweet spot' to sustain growth, and the GDP is expected to expand by over 7 per cent this financial year (FY26) on the back of strong macro fundamentals and ongoing reforms. Goenka also said that the chamber's focus for the coming year would be to increase the share of the manufacturing sector in the GDP from its current 15-17 per cent to 20-25 per cent levels over time.

To make sure that happens, he said the chamber has outlined priorities such as increasing R&D spending from 0.7 per cent to over one per cent of GDP; strengthening industry-academia partnerships, supporting the government's efforts to further promote ease of doing business, trade and supply chain security, and enhancing manufacturing excellence which includes focus on quality, women in the workforce, and adopting sustainable practices. He stated ‘I think GDP should be 7 plus kind of level (during 2025-26). After all the changes that have happened with respect to the income tax slab, GST changes, and labour code changes, I think that with the reforms coming in, the macros of India are looking very strong.’

Challenges at the trade front too will be resolved in a very short period of time, he said, adding, ‘so to that extent, we're in a sweet spot. Private investment capex is also something which is ready for a change.’ He said as capacity utilisation rises, greenfield investments by industry will also pick up. India's economy grew at a higher-than-expected 8.2 per cent - the fastest pace in six quarters - in July-September of current financial year, as front-loading of production ahead of GST rates cut boosted consumption that helped offset the impact of steep US tariffs.


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