Chief Economic Adviser V. Anantha Nageswaran said on Friday that India’s private capital expenditure remains robust despite global uncertainty, and the country is projected to achieve GDP growth exceeding 6.8 per cent in current fiscal (FY26). 

Speaking at an event here, he indicated a potential upward revision of GDP growth following Q2 data, citing a recovery in private capital expenditure and increased foreign inflows. The CEA noted that the first five months of the year have already seen net FDI inflows meaningfully higher than the last two years. Nageswaran added that FY 2024-25 has been a very good year for private capex, countering perceptions of slowdown.

Nageswaran said that private capex, which fell short in FY24, has rebounded strongly in FY25, indicating that the investment momentum is picking up pace. The CEA highlighted the importance of a robust regulatory and legal framework in enabling success across sectors, including correcting inverted duty structures.

He said that India’s strategy should prioritise plugging into global supply chains and enhancing domestic manufacturing capabilities instead of attempting to onshore all production. Nageswaran said that a US–India tariff deal could be finalised soon. He characterised India’s recent increase in consumption as primarily a supply-side expansion fuelled by strong investment momentum.

Earlier at the same event, SEBI Chairperson Tuhin Kanta Pandey noted that India’s sustained economic strength and progress to ‘Viksit Bharat’ goal will be significantly driven by its capital markets.

He also mentioned that companies have raised approximately Rs 2 lakh crore from the primary market this year, indicating robust investors’ confidence. Pandey highlighted structural opportunities, pointing out that mutual fund assets under management are below 25 per cent of GDP, with urban participation at approximately 15 per cent and rural participation at 6 per cent.