India's Economic Prospects Amid Tariff Challenges and GST Optimism

Chief Economic Advisor V Anantha Nageswaran expressed confidence in India's economic growth prospects, estimating a 6.3-6.8% rise this fiscal year. This optimism stems from anticipated boosts in consumption following proposed GST rate reductions, despite ongoing challenges posed by US tariffs.

Speaking after the release of April-June GDP data, Nageswaran noted that the 25% penal tariffs imposed by the US on Indian goods are expected to be temporary as negotiations continue. Additionally, uncertainties around additional tariffs on Russian crude oil are being addressed, with resolutions expected soon.

Despite potential risks to growth projections due to ongoing tariffs, it is anticipated that economic activity might accelerate in the year's later quarters, compensating for any initial downturn. The GST Council is set to meet to discuss reducing GST slabs, aiming to stimulate consumption despite revenue losses.

(With inputs from agencies.)