India's Economic Resilience: Domestic Growth to Offset US Tariff Impact
Chief Economic Adviser V Anantha Nageswaran assures that India's domestic consumption growth will counter US tariff impacts, maintaining GDP estimates for 2025-26 at 6.3-6.8%. Positive economic indicators and a potential S&P rating upgrade showcase India's robust economic fundamentals despite external tariff challenges.
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- India
In a virtual press conference, Chief Economic Adviser V Anantha Nageswaran expressed confidence in India's ability to withstand US tariff-related challenges through robust domestic consumption growth. Despite global uncertainties, GDP forecasts for 2025-26 remain unchanged at a promising 6.3% to 6.8%.
Nageswaran highlighted that recent high-frequency data for July reflects the economy's strong momentum. He cited favorable conditions such as the festive period, forthcoming GST rate changes, and bountiful monsoon rains contributing to increased domestic demand and benign food inflation.
The Chief Economic Adviser also emphasized India's strong macroeconomic fundamentals evidenced by a potential sovereign rating upgrade from S&P. Nonetheless, he cautioned about near-term risks affecting exports and capital formation due to persistent tariff-related uncertainties.
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