Resilient Demand and Thriving Economy: Insights from Chief Economic Adviser V Anantha Nageswaran

Chief Economic Adviser V Anantha Nageswaran discusses the resilience of urban demand, highlighting evidence from UPI transactions. He points out government measures and rural demand as key support factors. Nageswaran expresses optimism about resolving global trade issues while emphasizing the need for innovation and market exploration to sustain growth.

V Anantha Nageswaran, Chief Economic Adviser of India, indicated a possible discrepancy between data and reality concerning urban demand. During a session organized by the Merchant Chamber of Commerce and Industry, Nageswaran underscored that while statistics suggest a decline in urban spending, indicators such as UPI transactions reveal more robust consumption.

Nageswaran explained that spending is shifting to smaller businesses and non-listed companies, potentially evading official statistics. He highlighted that government initiatives and lower food inflation are boosting urban consumption. Meanwhile, rural areas show promising growth, with rising wages and increased sales of tractors and two-wheelers.

Although expressing optimism about India's economic trajectory, including steady export growth, Nageswaran acknowledged challenges in global trade due to tariff issues. However, he emphasized the need for ongoing innovation and exploration of new markets to maintain and enhance economic growth.

(With inputs from agencies.)