India's Economic Evolution Amidst Global Disruptions

Chief Economic Advisor V Anantha Nageswaran highlights opportunities for India amidst global disruptions, such as US tariffs on China. Lower crude prices benefit India's fiscal space. States have varying capacities for attracting investment based on per capita income. India expects 6.5% growth for 2024-25 with export improvements.

India stands to gain significantly from the global disruptions and trade policies affecting nations like China. Chief Economic Advisor V Anantha Nageswaran pointed out that the US tariffs on China could incentivize manufacturing shifts to India, leveraging its lower duties.

Despite concerns about trade tariff impacts on external demand and capital formation, opportunities arise with crude oil prices dropping to USD 60 per barrel, offering economic relief to India by reducing input costs and expanding fiscal space.

India's states, based on their economic dynamics, can attract investments as companies reconsider regional bases. With 14 states having middle-income status, the nation anticipates strong growth, forecasting a 6.5% rise in 2024-25 GDP driven by improving exports.

(With inputs from agencies.)