India's GDP Growth Forecast Raised to Over 6.8% by Chief Economic Advisor

Chief Economic Advisor V. Anantha Nageswaran has raised India's GDP growth forecast to over 6.8% for the current fiscal, an increase from earlier estimates of 6.3-6.8%. This optimistic outlook is driven by factors such as higher consumption post-GST, interest rate cuts, a pick-up in private capital expenditure, and strong foreign direct investment (FDI) flows. The Reserve Bank of India (RBI) has also revised its FY26 GDP growth projection upwards to 6.8%. Additional support could come from a trade deal with the US. Nageswaran highlighted the importance of supportive regulatory frameworks for cost competitiveness and integrating domestic production with global value chains. He also cautioned that AI, while beneficial for education and healthcare, poses a near-term risk of higher layoffs. A strong GDP forecast generally bolsters investor confidence and attracts foreign investment.

**Difficult Terms**: * **GDP**: Gross Domestic Product. The total market value of all finished goods and services produced in a country in a specific time period. * **GST**: Goods and Services Tax. A consumption tax levied at each stage of sale. * **Capex**: Capital Expenditure. Money spent by a company to acquire or upgrade physical assets. * **FDI**: Foreign Direct Investment. An investment made by a firm or individual in one country into business interests located in another country. * **CEA**: Chief Economic Advisor. A senior economic advisor to the government. * **RBI**: Reserve Bank of India. India's central bank. * **MPC**: Monetary Policy Committee. A committee of the RBI responsible for setting policy interest rates. * **Inverted duty structure**: Tax rate on inputs higher than on finished goods, harming domestic production competitiveness. * **Global value chain**: The full range of activities to bring a product from conception to final disposal.

**Impact**: 8/10