India's Economy Poised for Optimistic Growth Amid Global Uncertainty

Chief Economic Adviser Anantha Nageswaran asserts the Indian economy's potential to achieve growth at the higher end of its 6.3-6.8% projection, despite global challenges. Strong domestic components like foreign investment, private sector involvement, and robust agriculture are playing pivotal roles in this optimistic outlook.

In a virtual briefing, Chief Economic Adviser Anantha Nageswaran expressed optimism regarding India's economic trajectory, highlighting the nation's ability to hit the upper echelons of its 6.3%-6.8% growth forecast despite global headwinds. He noted the positive influence of factors such as foreign direct investment and increased private sector capital expenditure.

India's economy demonstrated robust growth in the fiscal year 2024-25, reaching a 6.5% expansion in real terms, as per the NSO's estimates and the Reserve Bank of India's projections. This followed an impressive 9.2% growth rate in 2023-24, maintaining its status as a rapidly expanding major economy.

Nageswaran dismissed concerns about monsoon impacts on vegetable prices, citing healthy crop forecasts and adequate inventories sustaining benign food inflation. As global economic forecasts propose slower growth for 2025 and 2026, India remains relatively unscathed, supported by resilient exports and declining oil prices, which could bolster fiscal stability and ease external economic strains.

(With inputs from agencies.)