India’s real GDP growth projected to grow at 6.4-6.7 pc in FY26: CII

New Delhi, July 3 (IANS) India’s real GDP growth is projected to grow in a range of 6.4-6.7 per cent in FY26, reinforcing the country’s position as the fastest-growing major economy in the world, the Confederation of Indian Industry (CII) said on Thursday.

CII President Rajiv Memani said that at a time when global economic and political volatility is at its highest in over two decades, India stands out as a bright spot in an increasingly fractured global economy.

Speaking at a CII event in the national capital, Memani said competitiveness is India’s passport to prosperity.

“But it must be earned through reform, through innovation, and through trust. CII remains committed to working alongside the government, industry, and citizens to accelerate India’s rise as a confident, competitive, and globally connected economy,” he said, adding that India’s internal momentum is strong enough to withstand external shocks.

In a world where the rules of trade and technology are rapidly changing, we must anchor India’s growth in competitiveness, rooted in scale, productivity, innovation, and resilience. It is our moment. But we must act decisively to seize it, he emphasised.

To be able to meet the developmental and infrastructure needs, while maintaining the fiscal balance, CII suggests a focus on augmenting government revenues through calibrated disinvestment of public sector enterprises.

About 10 per cent of the total market capitalisation, which is about Rs 55 lakh crore, rests with public sector enterprises (PSEs).

“We could look at divesting about 10 per cent of this market cap, which could yield about Rs 5 lakh crore. These proceeds could be utilised for enhancing public capex, retiring government debt, setting up a Sovereign Wealth Fund for investing in strategic assets overseas and acquiring critical technologies,” the CII President noted.

To address the problem of India’s “missing middle”, CII has proposed a Capital Support Scheme for small and medium companies in the manufacturing sector going for R&D, technology acquisition and employment creation.

To optimise business costs associated with land, the premier industry chamber proposed the constitution of a dedicated Taskforce on “Land Availability at Affordable Rates” to develop policy recommendations aimed at enhancing the competitiveness of the manufacturing sector”.

“In order to meet India’s ambitious energy transition targets, CII suggests drawing up sector-specific strategies, including that of mobility and proactively creating Green Hydrogen and Renewable Energy hubs. CII would also be launching a Mission on Energy transition, to encourage industry to shift to low-carbon alternatives,” it said.

–IANS

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