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  3. India can achieve potential growth rate of 7.5% in next few years: CEA

India can achieve potential growth rate of 7.5% in next few years: CEA

30 Jan 2026 Evaluate

Expressing optimism over India’s growth potential, Chief Economic Advisor (CEA) V Anantha Nageswaran has said that the country can achieve potential growth rate of 7.5% in the next few years. For this, he said the country needs to emphasis on strengthening manufacturing and export competitiveness. He noted that the country also needs to pursue further process reforms in the areas of land and cost subsidisation and bring down the cost of manufacturing. Economic Survey 2025-26, tabled in Parliament, had raised the country's potential growth forecast to 7% from the earlier projection of 6.5% (estimated three years earlier).

He further said the Economic Survey presented three years ago had projected the maximum potential growth of the Indian economy at 6.5 per cent, and it could rise to between 7-8 per cent per annum in the medium-term potential reforms. He said over the past three years, reform momentum has strengthened across several areas relevant for medium-term growth.

The Survey said manufacturing-oriented initiatives, such as the Production-Linked Incentive (PLI) schemes, FDI liberalisation, and logistics reforms, have supported capacity creation, and added that these efforts have been supported by sustained public investment in physical and digital infrastructure, with effective capex reaching 4% of GDP. The simplification of tax laws and the establishment of various High-Level Committees for regulatory reforms, including those involving state governments, indicate a shift toward greater regulatory clarity and certainty.


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