Chief Financial Adviser, V Anantha Nageswaran (file picture)
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ANI
With the change within the base 12 months and methodology for calculating Gross Home Product (GDP), Chief Financial Advisor V Anantha Nageswaran on Friday revised upward the expansion estimates for fiscal 12 months 2026-27 by 20 foundation factors. On the similar time, the fiscal deficit projection for the present fiscal 12 months has been elevated by 10 foundation factors.
The brand new base 12 months for GDP calculation has now been revised to 2022-23 from 2011-12. The Statistics Ministry has additionally revised the actual GDP development charge for fiscal years 2023-24, 2024-25 and 2025-26.
In a media briefing, the Chief Financial Advisor stated, “Financial Survey’s projection for FY27 has been revised upward to 7-7.4 per cent beneath the brand new sequence.” Earlier, it was 6.8-7.2 per cent. “The brand new estimates are with upward threat. This implies the economic system is extra more likely to obtain a quantity nearer to 7.4 per cent somewhat than 7 per cent,” he stated.
Additional, he stated that the economic system continues to take care of robust development momentum, supported by broad-based financial sectors. Beneficial supply-side circumstances, together with sturdy rabi sowing, snug foodgrain shares and easing international commodity costs, are anticipated to maintain inflation low and steady.
“Fiscal consolidation is on observe, with fiscal deficit estimated at 4.5 per cent for 2025-26, beneath the brand new sequence, with out compromising on Capital Expenditure,” he stated.
Earlier, the revised fiscal deficit was 4.4 per cent of GDP, but it surely has been revised upward as a result of change in nominal development. Nonetheless, when requested a few revision within the Funds Estimates of the fiscal deficit for the present fiscal 12 months, which is pegged at 4.3 per cent of GDP, Nageswaran refused to remark. He highlighted that per capita nominal GDP development might attain 9 per cent, noting that lately, per capita actual revenue development has averaged about 6.8 per cent.
GDP Development Revision
In the meantime, the Statistics and Programme Implementation Ministry (MoSPI) has revised the GDP development estimate for the present fiscal 12 months to 7.6 per cent from 7.4 per cent after the change within the base 12 months and the addition of knowledge from GST and the e-Vahan portal to raised mirror financial exercise. In line with the brand new sequence, the gross home product (GDP) within the October-December quarter of 2025-26 grew by 7.8 per cent, up from 7.4 per cent within the year-ago interval, primarily pushed by the manufacturing and providers sectors.
Additional, GDP development for the second quarter has been revised upwards to eight.4 per cent from 8.2 per cent within the previous sequence (base: 2011-12), whereas for the primary quarter, it has been lowered to six.7 per cent from 7.8 per cent.
Anantha Nageswaran additionally stated the momentum within the economic system is sweet sufficient to ship a development charge of seven.3 per cent or extra, in order that FY26 development estimates of seven.6 per cent are achieved.
“Actual GDP or GDP at Fixed Costs is estimated to realize a stage of ₹322.58 lakh crore in FY26, in opposition to the First Revised Estimate (FRE) of GDP for the 12 months 2024-25 of ₹299.89 lakh crore. The expansion charge in Actual GDP throughout 2025-26 is estimated at 7.6 per cent as in comparison with 7.1 per cent in 2024-25,” MoSPI stated whereas releasing the brand new sequence.
Revealed on February 27, 2026
