Chief Economic Advisor V. Anantha Nageswaran stated on Friday that India is expected to see GDP growth of more than 6.8% in the current fiscal year (FY26) and that private capital spending is still strong despite global concerns.

Speaking at an event here, he cited a recovery in private capital spending and higher foreign inflows as reasons for a possible upward revision of GDP growth following Q2 statistics.

According to the CEA, net FDI inflows have already significantly exceeded those of the previous two years in the first five months of this year. Contrary to expectations of a decrease, Nageswaran continued, FY 2024–2025 has been a very good year for private capital expenditures.

According to Nageswaran, private capital expenditures have significantly increased in FY25 after failing in FY24, suggesting that the trend for investments is accelerating.

In order to facilitate success in all areas, including the correction of inverted duty structures, the CEA emphasized the significance of a strong regulatory and legislative environment.

Instead of trying to onshore all production, he added, India’s policy should focus on strengthening domestic manufacturing capabilities and connecting to international supply chains.

A tariff agreement between the US and India may soon be finalized, according to Nageswaran. He described the recent boost in consumption in India as mostly a supply-side boom driven by robust investment activity.

SEBI Chairperson Tuhin Kanta Pandey stated earlier at the same occasion that India’s capital markets will play a major role in the country’s continued economic strength and advancement toward the “Viksit Bharat” goal.

Additionally, he stated that businesses had raised about Rs 2 lakh crore from the main market this year, demonstrating strong investor confidence.

Pandey emphasized structural opportunities, pointing out that the assets under administration of mutual funds account for less than 25% of GDP, with urban participation at roughly 15% and rural involvement at 6%.