Full-Year GDP Growth Seen At 7% Or Higher, Says CEA After Q2 Boost

India's full-year economic growth will likely be revised to 7% or higher from the current projection of 6.5%, Chief Economic Advisor V Anantha Nageswaran said on Friday.

"The confluence of stable inflation, sustained public capex, and reform momentum positions the economy to navigate risks, as reflected in upward revisions to FY26 GDP growth projections by various agencies," the CEA told reporters at a press conference in New Delhi.

The July-September period GDP growth rate came in at 8.2%, the fastest expansion in six quarter and far higher than forecasts.

"We were concerned in August on negative impact of US tariffs. We are now talking about 7% growth rate or higher," the CEA said.

The US tariff of 50% on most Indian goods came into force in August and caused a decline in exports in the subsequent months.

However, GDP data released on Friday showed manufacturing and services activity expanded sharply compared to last year due to higher private consumption and investment.

A government statement said improving price dynamics and tax reforms are expected to boost household disposable incomes, strengthening the near-term consumption outlook. Moreover, healthy corporate sector balance sheets augur well for sustained private investments in the remaining half of FY26.

The CEA also said the government's First Advance Estimates will use the existing base while the Second Advance Estimates will shift to the new base series. The Q1 and Q2 data will be also revised under the new GDP base.