GDP growth to near 7% in FY26 says CEA, but is everyone growing with it?

India’s Chief Economic Advisor (CEA) V. Anantha Nageswaran on Wednesday expressed confidence that the country’s economy is on track to grow by around 7% in the financial year 2025-26 (FY26), despite global uncertainties and trade disruptions.

Speaking at the India Maritime Week in Mumbai, he said India’s performance has been “quite satisfactory” amid global headwinds, crediting the government’s policy measures, tax reliefs, and fiscal discipline for keeping growth steady.

Nageswaran pointed out that three leading global rating agencies, including Standard & Poor’s (S&P), have recently upgraded India’s outlook, and if this trend continues, the country could “soon move into the ‘A’ rating category.” He added that this would help reduce borrowing costs and improve investor confidence.

Earlier this year, the CEA had projected that gross domestic product (GDP) growth could fall to around 6-6.3% for FY26 due to tariff-related pressures, but the economy’s resilience and the Reserve Bank of India’s (RBI) liquidity measures have improved expectations. He also noted that total resource mobilisation, including funds raised through non-bank lenders, commercial papers, and equity markets, has risen by 28.5% annually over the last six years, reflecting strong financial depth beyond traditional banking.

Nageswaran also welcomed the introduction of goods and services tax (GST) 2.0, calling it a “good and timely change” that simplifies compliance, boosts tax transparency, and strengthens revenue collection, a reform expected to further streamline India’s fiscal landscape.

He further said that the government would continue to maintain fiscal prudence, macroeconomic stability, and low inflation, stressing that India has managed to raise per capita income without accumulating excessive debt.

Growth on paper, gaps on the ground

While the numbers reflect a robust recovery, the question remains, does this growth truly reach everyone? India’s economy may be expanding rapidly, but for millions of ordinary citizens, that prosperity feels distant.

Despite the impressive 6-7% GDP growth rate, unemployment and inequality remain pressing realities. More than 50% of India’s workforce still earns their livelihood in the unorganised sector, often with no job security, benefits, or stable income. These include gig workers, street vendors, construction labourers, and daily-wage earners, people who are technically “employed” but continue to live on the edge of survival.

At the same time, corporate profits and stock markets are soaring. The top 10% of Indians now control nearly 77% of the country’s wealth, while the bottom half sees little change in their real incomes. This uneven distribution means that economic growth, though impressive in numbers, doesn’t always translate into better living standards for the majority.

The cost of living and the cost of inequality

For many middle- and low-income families, the cost of living has risen faster than their earnings. Housing rents in metro cities like Mumbai, Bengaluru, and Delhi have surged by 20-40% in the past two years, and prices of essentials, from food to healthcare, continue to climb.

In rural India, real wages have stagnated, and job creation remains slow. Even among graduates, youth unemployment stands high, revealing a mismatch between education and employability.

So while India’s economy is praised as the world’s fastest-growing, its growth is not yet inclusive. GDP measures output, not well-being. It tells us how much the nation produces, but not who benefits from that production.

A future worth striving for

The CEA’s optimism may be justified, India’s macroeconomic fundamentals are stable, inflation is under control, and global investors remain confident. But for growth to feel real, it must reflect in jobs, wages, and opportunities for all.

A nation cannot call its growth successful if it leaves half its people behind, those working without contracts, education, or fair pay. True progress means creating secure, formal jobs, ensuring affordable living, and building equal access to education and healthcare.

India’s 7% growth story is impressive, but its true success will not be measured in numbers. It will be measured by how many lives rise with it.