Chief Financial Adviser, V Anantha Nageswaran (file photograph)
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ANI
With the change within the base yr and methodology for calculating Gross Home Product (GDP), Chief Financial Advisor V Anantha Nageswaran on Friday revised upward the expansion estimates for fiscal yr 2026-27 by 20 foundation factors. On the identical time, the fiscal deficit projection for the present fiscal yr has been elevated by 10 foundation factors.
The brand new base yr for GDP calculation has now been revised to 2022-23 from 2011-12. The Statistics Ministry has additionally revised the true GDP development price for fiscal years 2023-24, 2024-25 and 2025-26.
In a media briefing, the Chief Financial Advisor mentioned, “Financial Survey’s projection for FY27 has been revised upward to 7-7.4 per cent below the brand new sequence.” Earlier, it was 6.8-7.2 per cent. “The brand new estimates are with upward danger. This implies the economic system is extra more likely to obtain a quantity nearer to 7.4 per cent quite than 7 per cent,” he mentioned.
Additional, he mentioned that the economic system continues to take care of sturdy development momentum, supported by broad-based financial sectors. Beneficial supply-side circumstances, together with strong rabi sowing, snug foodgrain shares and easing international commodity costs, are anticipated to maintain inflation low and secure.
“Fiscal consolidation is on monitor, with fiscal deficit estimated at 4.5 per cent for 2025-26, below the brand new sequence, with out compromising on Capital Expenditure,” he mentioned.
Earlier, the revised fiscal deficit was 4.4 per cent of GDP, nevertheless it has been revised upward because of the change in nominal development. Nevertheless, when requested a few revision within the Finances Estimates of the fiscal deficit for the present fiscal yr, which is pegged at 4.3 per cent of GDP, Nageswaran refused to remark. He highlighted that per capita nominal GDP development may 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 yr to 7.6 per cent from 7.4 per cent after the change within the base yr and the addition of knowledge from GST and the e-Vahan portal to higher mirror financial exercise. Based on 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 companies sectors.
Additional, GDP development for the second quarter has been revised upwards to eight.4 per cent from 8.2 per cent within the outdated 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 mentioned the momentum within the economic system is sweet sufficient to ship a development price 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 yr 2024-25 of ₹299.89 lakh crore. The expansion price 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 mentioned whereas releasing the brand new sequence.
Revealed on February 27, 2026
