Reforms like Labour Codes, GST rationalisation continue to enhance economic efficiency: CEA

New Delhi [India], November 28 (ANI): The structural reforms are enhancing efficiency and competitiveness, supported by strong macroeconomic policies, said Chief Economic Advisor, V Anantha Nageswaran on Friday.

Addressing the media after the release of the Quarterly Estimates of Gross Domestic Product (GDP) for the July-September quarter, the CEA said the reforms, including the implementation of Labour Codes, GST rate rationalisation, new Personal Income Tax regime and deregulation initiatives, continue to enhance efficiency and competitiveness.

With stable inflation, increased public capital expenditure and steady reform momentum, India is positioned to navigate global and domestic risks effectively. "These positive factors have led multiple agencies to revise India's FY26 GDP growth projections upward," the CEA said.

Growth momentum remains solid, driven by a robust expansion in both manufacturing and services.

CEA highlighted that the festive demand and gains from Goods and Services Tax (GST) reforms have further bolstered overall economic activity. "At the same time, core inflation has stayed stable, aided by timely Rabi sowing and healthy reservoir levels, ensuring a benign outlook for food prices," he said.

Highlighting that the government revenues have shown continued strength, he said the cumulative GST collection growth of nine per cent for April to October 2025 indicates that the underlying revenue stream has remained resilient, aided by firm consumption and improved compliance.

CEA also talked in his presentation about the household disposable incomes, saying the improving price dynamics and tax reforms are expected to boost household disposable incomes, strengthening the near-term consumption outlook.

Additionally, the corporate sector's healthy balance sheets are projected to sustain private investment growth in the second half of FY26.

India's nominal GDP grew at an 8.7 per cent rate during the September quarter, data showed today.Real GDP has registered an 8.0% growth rate in H1 (April-September) of FY 2025-26, compared with 6.1% in H1 of FY 2024-25.In the April-June quarter, India's real GDP grew 7.8 per cent, up from 6.5 per cent in the same quarter of the previous fiscal. India's nominal GDP grew at an 8.8 per cent rate during the said quarter.In 2024-25, the Indian economy grew by 6.5 per cent in real terms.

The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25. In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy.

According to official data, the economy grew 8.7 per cent and 7.2 per cent, respectively, in 2021-22 and 2022-23.To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25, tabled on January 31 this year, had said. (ANI)

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