Indian Economy Surges Amid US Trade Tensions
Chief Economic Adviser (CEA) V Anantha Nageswaran expressed optimism about India's economic resilience, despite US-imposed tariffs affecting trade. The Indian economy grew 7.8% in April-June, buoyed by the agriculture sector and services. Ongoing trade discussions with the US might help mitigate these impacts in upcoming quarters.
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- India
India's economy continues to exhibit strong resilience despite facing global trade challenges, according to Chief Economic Adviser V Anantha Nageswaran. The country's growth momentum, driven by the agriculture sector and services, recorded a 7.8% rise in GDP during the April-June quarter, marking the fastest expansion in five quarters.
The ongoing trade disputes with the United States, resulting in a steep 50% tariff on Indian goods effective since August, pose potential challenges for the coming quarters. However, Nageswaran remains hopeful that the economic impact of these tariffs, along with a penalty on Russian crude oil imports, will be mitigated through government discussions and possible resolutions.
Furthermore, the promising monsoon season and upcoming GST tax relief are expected to bolster agricultural productivity and sustain economic growth. As India remains the fastest-growing major economy, with China's GDP growth at 5.2%, efforts to maneuver through external economic pressures are crucial for maintaining this trajectory.
(With inputs from agencies.)
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