CEA optimistic of meeting GDP target

NEW DELHI: Given expectation of benign inflation, there may be a shortfall in nominal GDP growth compared to the Budget estimate of 10.1% for FY26, chief economic adviser V Anantha Nageswaran said. He expressed optimism about meeting the real GDP growth target of 6.3-6.8% despite the US imposing a steep 50 per cent tariff on Indian shipments.

Nominal GDP includes changes in prices caused by inflation, reflecting the impact of rising overall price levels, while real GDP is an inflation-adjusted measure that evaluates the value of all goods and services produced in a country during a specific year. "Some shortfall in nominal GDP growth may be there. I think there is a higher chance of that happening. However, what is encouraging to me is that the nominal GDP growth number at 8.8% for the first quarter was better than what many had feared that it would be, somewhere between 8 and 8.3 or 8.5%," he said.

About the impact of GST reforms on GDP, Nageswaran said, "Much will depend on how consumers respond and whether it will be offset by any uncertainty related to external trade, etc." Agencies