Business News: When the US imposed a 50 percent tariff on India, the country's Chief Economic Advisor, V. Anantha Nageswaran, unscientific the country's GDP growth at 6 percent. Lowering his previous estimate of 6.3 percent, the CEA underestimated the country's growth. Now, with significant progress in the form of GST reform, which has boosted the country's growth and economic indicators, he has revised his forecast again. He now states that the country is responding well to global challenges. Consequently, the country's growth rate could be 7 percent in the current financial year. Let us tell you what he said…
Increase in credit
Chief Economic Counselor (CEA) V. Anantha Nageswaran on Wednesday said the Indian economy has faced global challenges satisfactorily. He expressed conviction that the gross domestic product (GDP) growth rate could reach 7 percent in the financial year 2025-26, based on the wiring year 2011-12. Nageswaran said at the India Maritime Week (IMW) here that three global rating agencies have recently upgraded India's credit rating and if the country continues on this path, it could soon reach the A rating category.
The academician-turned-policy counselor said the economy's resilience, combined with the steps taken by the government and the Reserve Wall of India (RBI), has put the Indian economy in a "comfortable position."
What gave strength to GDP?
He said that we should be quite satisfied with the Indian economy's handling of global uncertainties and tariff developments this year. The Chief Economic Counselor said that policy measures, including income tax relief and rationalization of the Goods and Services Tax (GST), have improved this year's economic growth prospects to virtually 7 percent in real terms for the financial year 2025-26.
The estimate was lowered earlier
Nageswaran had projected in February that GDP growth for the current fiscal year could reach 6.3 percent, based on the 2011-12 wiring year. However, he remoter revised this downward to six percent due to US tariffs. He said, however, that the strength of the economy and timely policy measures to uplift demand have put us in a very well-appointed position.
Answer given on this also
Responding to criticism of the slowdown in wall credit growth, he said that to reach a conclusion, we must squint at the total resource mobilization in the economy, which includes funds raised through non-bank lenders, commercial paper, certificates of deposits, probity markets, etc.
Citing RBI data, he said that total resource mobilization in the economy has grown at 28.5 percent annually over the last six years. This scuttlebutt comes at a time when there is widespread snooping well-nigh sluggish growth in private wanted expenditure. Nageswaran stressed that the RBI has cut policy interest rates and taken liquidity measures to ensure unobjectionable liquidity in the economy.
