CEA V Anantha Nageswaran confident Indian economy will cross $4 trillion mark in FY26 — Here's why

India's Chief Economic Advisor V Anantha Nageswaran believes the economy is set to cross the $4 trillion mark in the current fiscal, FY2026, PTI reported on 25 November. At present, India is the fifth largest economy in the world with a GDP of around $3.9 trillion.

Nageswaran was speaking at the IVCA Green Returns Summit 2025, Nageswaran stated, “the Indian economy is already sort of crossing the $4 trillion mark, in the course of the current financial year, from $3.9 trillion at the end of March 2025.”

Way ahead is aligning priorities, believes Nageswaran

He added that with geopolitics in a “huge state of flux”, economic growth is very vital prerequisite to maintain India's standing and leverage on the world stage.

“So, whatever we do with respect to greening the economy, energy transition, environment, dealing with climate change and climate volatility have to be aligned with our priorities, both in the near term and the medium term,” he feels.

Nageswaran said the country is well aware of the potential consequences of global warming and climate change and more generally for agriculture environment, and coastlines, etc. “That is why we as a country are committed to achieving net zero by 2070,” Nageswaran added.

Nageswaran on economy: Confident growth more than 6.8% in FY26

Speaking at CNBC-TV18 event on November 7, the CEA was also confident that India's economic growth would be upwards of 6.8% in FY26, largely due to GST driven consumption boost and income tax relief.

Notably, the Economic Survey tabled in parliament in January had projected real economic growth of 6.3-6.8 per cent for FY26.

“Comfortable looking at a number north of 6.8% now. My original range was 6.3-6.8% (projected in Economic Survey). Back in August, we were all concerned about whether we would even go towards the lower end of the 6-7 range. Now I think there is a lot of comfort in saying that it would be definitely north of 6.5% and I am more comfortable saying even north of 6.8%, but whether I will put a 7% handle in front of it, I will wait for the second quarter numbers to come out before I move even a notch higher,” Nageswaran said at the event.

He further added that growth would be accelerated if the India-US bilateral trade agreement (BTA) is successful. “If by some chance, as we are still hoping, there is a resolution on the trade front, then the upward bias will become a mainstream forecast,” he said, adding that he hopes the BTA is done soon.

(With inputs from PTI)