In a recent briefing, Chief Economic Advisor V Anantha Nageswaran shared positive forecasts. Despite global uncertainties, India's economic outlook remains
robust, with growth expected at 6.3-6.8%.
Growth Projections Confirmed
The Economic Survey projected real economic growth at 6.3-6.8% for FY26. The recent announcement from the Chief Economic Advisor, V Anantha Nageswaran, confirmed that India's economy is still on track to meet this target, despite some concerns. Strong domestic demand is a key driver.
US Tariffs: A Concern
The imposition of US tariffs poses a potential downside risk. The steep 50% tariffs have the potential to impact growth. However, talks are underway to address these tariffs. The government views these tariffs as 'short-lived,' suggesting confidence in a resolution.
Domestic Demand to Rise
The anticipation of a GST rate cut is expected to boost aggregate demand in upcoming quarters. Additionally, the festive season is expected to fuel consumer spending. These factors are crucial in maintaining economic momentum and reaching growth projections.
Q1 GDP Performance
The first-quarter GDP numbers came in at a strong 7.8%. This resilience in Q1 performance supports the government's confidence in the overall growth forecast. This robust performance helps in retaining the growth rate projections for the current fiscal year.
Future Outlook & Deals
The government is optimistic about the removal of tariffs, with ongoing discussions for a bilateral trade deal between the US and India. This would further solidify the economic outlook. Nageswaran believes that the downside risk is unlikely to be significant.
