Chief Economic Advisor V. Anantha Nageswaran on Thursday said India’s potential growth of 7% pegged in the Economic Survey 2025-26 can even touch 7.5% or 8% in the next few years if the country checks some of the key boxes like ensuring competitiveness, addressing land issues, and export competitiveness, among others. Quoting poet Robert Frost, the CEA said, “We have promises to keep and miles to go before we can sleep.”

“Reform express has pushed India's potential GDP growth to 7%. That is why the GDP projection for FY27 has been kept at 6.8-7.2%. This is subject to risk factors, which may derail the calculations on a short-term basis,” Nageswaran said, addressing a press conference on the Economic Survey 2025-26.

“But on medium-term trend growth for the Indian economy, we believe now it is 7%. If we are able to achieve manufacturing and export competitiveness, and pursue further process in the areas of land and bring down the cost in manufacturing, this 7% can even rise to 7.5% or 8% in the next few years as well. In conclusion, we have done well and we are doing better,” said Nageswaran.

Rupee weakness does not indicate macro instability: CEA

Nageswaran stressed that a manufacturing push is a must for a strong currency. “Currency depreciation is an emerging market wide phenomenon. To achieve currency strength, we must first raise manufacturing strength,” he said. “Rupee weakness is due to capital outflows on account of higher interest rates globally. It does not indicate macro instability,” the CEA pointed out, and said the government will not give an outlook on the rupee, while adding that forex levels depend on market forces.

EU-India FTA to offer geographical diversification: CEA

Nageswaran said the recent India–EU Free Trade Agreement will offer geographical diversification to India's exports. “A number of trade deals have been finalised in the last few months. The EU-India trade deal offers true geographical diversification for Indian exports,” he said.

Amid global challenges, the CEA said Swadeshi is a legitimate policy choice. “Swadeshi matters as the nature of the global system has changed. Trade is no more reciprocal. Markets are no more neutral,” he added.

The CEA said the Survey also points out that both the centre and the states need to take efforts towards fiscal sustainability. “Long-term fiscal sustainability requires consistency in the Centre's efforts, and prudence and commitment by the state governments,” he said.