India's growth can jump to 7.5% in next few yrs

New Delhi: India's potential growth rate can jump to 7.5 per cent in the next few years if the country puts emphasis on bolstering manufacturing, exports and process reforms, Chief Economic Advisor V Anantha Nageswaran said on Thursday. Economic Survey 2025-26, tabled in Parliament earlier in the day, has raised the country's potential growth forecast to 7 per cent from the earlier projection of 6.5 per cent estimated three years earlier.

"If we are able to achieve manufacturing and export competitiveness and pursue further process reforms in the areas of land and cost subsidisation and bring down the cost of manufacturing, the potential 7 per cent growth can even rise to 7.5 per cent and 8 per cent in the next few years," he said in a media interaction after the Survey was tabled in Parliament.

He further said the Economic Survey presented three years ago had projected the maximum potential growth of the Indian economy at 6.5 per cent, and it could rise to between 7-8 per cent per annum in the medium-term potential reforms. Over the past three years, he said, reform momentum has strengthened across several areas relevant for medium-term growth.

Manufacturing-oriented initiatives, such as the Production-Linked Incentive (PLI) schemes, FDI liberalisation, and logistics reforms, have supported capacity creation, the Survey said, adding that these efforts have been supported by sustained public investment in physical and digital infrastructure, with effective capex reaching 4 per cent of GDP.