New Delhi [India], June 5 (ANI): India's FY26 economic growth presents a 'balanced picture' with different components contributing from both the Gross Value Added (GVA) and expenditure sides of the economy, Chief Economic Adviser (CEA) V Anantha Nageswaran said today while commenting on the provisional estimates of annual Gross Domestic Product (GDP).

'So overall, I think it is a balanced picture with respect to the different components of the economy contributing to growth from the GVA perspective and also from the expenditure perspective,' Nageswaran told ANI.

The CEA said the growth outcome reinforced the assessment that the Indian economy had entered 2026 from a position of strength.

'We are obviously very pleased with the growth outcome. It only confirms what we believed on February 27 that the Indian economy was actually in a pretty strong Goldilocks situation with good growth, moderating inflation and fiscal deficit coming down, etc.,' he said.

Explaining why he described the FY26 performance as balanced, Nageswaran said the economy recorded improvements across major sectors and expenditure components.

'You can see that the gratifying thing is not only the pickup in services sector growth rate, but also the double-digit, near double-digit in one year, but more than double-digit in the other two years in manufacturing growth rate as well,' he said.

On the demand side, he highlighted the recovery in consumption and investment.

'The private final consumption expenditure found its footing in FY26, and the more gratifying thing, as in the case of manufacturing in the bottom left chart, you can see the gross fixed capital formation rate being 8.2 per cent, which is a good pickup, and that continued in the quarterly numbers as well that we saw,' Nageswaran said.

The CEA said the latest GDP numbers reflected the underlying strength of India's macroeconomic trends and pointed to continued momentum in the economy despite growing global uncertainties.

'These numbers show that there is an underlying strength and resilience to India's macroeconomic trends, and we are heartened to see that the high-frequency data have confirmed that this momentum has continued into the new financial year so far, notwithstanding the global uncertainties we face,' he said.

Nageswaran noted that the economy entered the current financial year against the backdrop of the West Asia conflict that began on February 28, which has introduced fresh uncertainties related to energy prices, inflation and global growth.

He said crude oil prices remain a key variable for the global economy and India, with the extent of supply disruptions likely to influence growth and inflation outcomes going forward.

At the same time, he pointed to signs of resilience in economic activity. Core merchandise exports, excluding petroleum products and gems and jewellery, recorded double-digit growth in April, while services exports also remained strong. High-frequency indicators available through April and May likewise suggested continued momentum in domestic demand and economic activity.

According to the CEA, structural reforms undertaken over the years, continued public capital expenditure and investments in infrastructure have helped strengthen the economy's foundations. He said these factors could support growth and help the economy navigate external uncertainties in the period ahead. (ANI)