India's Resilience Amid US Tariffs and GST Reforms

Chief Economic Adviser V Anantha Nageswaran has highlighted a resilient outlook for India's economy despite potential nominal GDP growth shortfalls. Nageswaran remains hopeful about meeting the real GDP growth target of 6.3-6.8% for the fiscal year, even in the face of US-imposed tariffs.

Factors supporting this optimistic outlook include benign inflation expectations due to a favorable kharif harvest and GST reform-induced price reductions. These reforms, spearheaded by Finance Minister Nirmala Sitharaman, are likely to boost consumer spending and domestic consumption, ultimately supporting economic growth.

While the US's 50% tariff on Indian goods poses challenges, Nageswaran suggests the Indian economy's strong first-quarter performance hints at underlying resilience. With continued momentum expected, the impact of US tariffs and GST reforms will be pivotal in shaping future economic trajectories.