India's Economic Growth Outpaces Challenges with Domestic Demand Surge

Chief Economic Advisor V Anantha Nageswaran projects India's economy to grow between 6.3 and 6.8% due to strong domestic demand despite US tariff challenges. The first quarter GDP growth hit 7.8%. Talks are ongoing for tariff removal. Demand is expected to remain strong with potential GST rate cuts and festive consumption.

Chief Economic Advisor V Anantha Nageswaran expressed optimism about India's economic growth, projecting an increase between 6.3 and 6.8% for the current fiscal year. This forecast is fueled by robust domestic demand despite potential threats from hefty U.S. tariffs, which he labels as temporary.

During a press briefing, Nageswaran discussed the recently announced first quarter GDP growth of 7.8%, attributing this resilience to ongoing negotiations for lifting the 25% penal tariffs. He restated the confidence in achieving the growth projections despite current economic uncertainties.

Additionally, Nageswaran indicated that economic activity should maintain its momentum through the anticipated GST rate cuts and heightened consumer spending during festive seasons.

(With inputs from agencies.)