Chennai: India’s Chief Economic Adviser V. Anantha Nageswaran on Tuesday said the country is on track to exceed the $4 trillion mark in nominal GDP during the current financial year, reinforcing the view that the economy is expanding steadily despite volatile global conditions.
Speaking at a public event, Nageswaran noted that India’s economic size was already close to $3.9 trillion at the end of the previous fiscal, and ongoing growth momentum suggests that the long-anticipated threshold will be crossed before March. He described this as a “natural progression” for an economy that has sustained rapid expansion even as the external environment remains uncertain.
Nageswaran stressed that growth remains a critical element of India’s global positioning. According to him, sustained economic expansion is essential not only for maintaining domestic development but also for strengthening India’s influence and resilience amid shifting geopolitical alignments. He acknowledged that global supply chains, energy markets, and investment flows are all operating in an environment marked by heightened unpredictability, making India’s steady performance notable.
While celebrating the milestone, he also underlined that the headline number must be viewed alongside ongoing structural improvements. India’s economic advances, he said, will be more meaningful if accompanied by rising productivity, stronger job creation, and deeper reforms across manufacturing, infrastructure, and services.
Crossing the $4 trillion GDP mark—if achieved this fiscal—would represent a symbolic and substantive step for the Indian economy. It places India more firmly among the world’s major economic powers and strengthens the government’s narrative that the country has entered a new phase of scale and stability. The milestone could bolster India’s case for greater foreign investment, give policymakers additional confidence to pursue reforms, and enhance its standing in international negotiations.
However, the achievement largely reflects nominal GDP growth, which depends on a combination of real economic activity and inflation. For the number to translate into broad-based gains, real growth must remain strong and inclusive. Key vulnerabilities—such as uneven job growth, productivity gaps in traditional sectors, and dependence on global demand cycles—remain important areas for policy attention.
The coming fiscal year will test whether the economy can maintain high growth amid global monetary tightening, geopolitical tensions, and unpredictable commodity prices. Sustained investment, continued policy reforms, and macroeconomic stability will determine whether India can move decisively toward becoming a $5 trillion economy thereafter.
For now, the CEA’s projection signals confidence that India’s economic expansion has reached a new scale—one that, if supported by reforms and stability, could reshape the country’s long-term development trajectory.
