Representative image of GDP.
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New Delhi: Buoyed by more-than-expected 8.2 per cent GDP growth rate in the second quarter, Chief Economic Adviser V Anantha Nageswaran on Friday expressed optimism that India's economy is likely to record growth of 7 per cent or higher than that in the current financial year.
The Economic Survey tabled in Parliament in January had projected real economic growth of 6.3-6.8 per cent for FY26.
Briefing the media after the release of the second-quarter GDP growth, Nageswaran said the Indian economy is expected to cross USD 4 trillion in the current fiscal year, given the current rate of growth.
India's Gross Domestic Product (GDP), an indicator of the size of the economy, stood at USD 3.9 trillion at the end of March this year, he added.
As India's economy recorded an 8 per cent growth rate in the first half of the current financial year, he said, the full-year outlook for GDP growth rate is now 7 per cent, or north of 7 per cent.
The Indian economy grew by a higher-than-expected 8.2 per cent -- a six-quarter high -- as increased factory production in anticipation of a consumption boost from the GST rate cut helped offset deceleration in farm output.
The growth in the second quarter, which compared to 7.8 per cent in the preceding three months and 5.6 per cent in the year-ago period, was also aided by a good showing by the services sector, which clocked double-digit growth.
The third quarter (October-December) of the current fiscal year has commenced on a sound footing, he pointed out.
He further said that the rural demand remains resilient while urban demand is gaining traction post-GST rate cut.